Losing a stock certificate can seem like a headache compounded with a long replacement process, but it really isn’t. Legacy Stock Transfer will work with our surety company, Traveler’s Casualty, to have your replacement shares reissued, usually within two weeks. Remember, do not panic, even without the physical stock certificate in your possession, you are still the owner of your shares.
You might ask then, “Why do a need the physical certificate if the shares are in my name?” The simple answer is unless your shares have been transferred into book entry form, your physical stock certificate is the only tangible proof you have in ownership of your shares. Even book entry shares would have either been derived from a transfer from a physical stock certificate or a corporate resolution from the issuer.
First, contact our offices as soon as you notice that your shares are missing or have been misplaced. We will place a precautionary “stop” against your shares so that no unauthorized transfer of your shares can take place. Think of this as a stop payment on a check. This precautionary stop will remain on our system for 90 days. If you do find your certificate during this period, please contact us immediately so we can remove the stop transfer order. As long as the stop transfer order is in place, neither Legacy Stock or your stockbroker can transfer, deposit or DWAC your shares.
After the precautionary stop transfer is placed against the lost certificate, we will send you an Affidavit of Loss/Lost Instrument Bond to be completed along with instructions on how to complete the bond form. Please complete the first two pages of the bond, and if necessary, the third page if your shares are valued at over $50,000.00. If your shares are valued at over $50,000.00, you will need to provide financial documentation as set forth by the bonding company.
The cost for replacing a lost certificate will vary depending on the value of your shares. Legacy Stock charges a standard fee no matter if your shares are worth one hundred dollars or a million dollars. The bonding company, however, will charge 2% of the value of your lost shares with a minimum of $50.00 to issue the bond as they agree to take on any liability that may arise after the shares are replaced.
Please send the completed bond form, replacement fee, bond fee for the surety company and any necessary financial documents to our offices. We will submit everything to our bonding company. We will also complete all the additional paperwork that would need to be filed with the Securities & Exchange’s Lost and Stolen Securities Program.
Remember, if you find your shares before the Affidavit has been processed, contact us so we can lift the stop from your shares. If the original certificate is found after the shares have been replaced, please return the original shares back to our firm so we can cancel the replaced certificate so there is no confusion as to which certificate is valid.
This may seem like a huge process to go through, but we are here to guide you throughout the replacement of your lost shares. If you need any assistance in completing the lost paperwork, please contact our offices and one of our knowledgeable transfer agents will walk you through the replacement process.