surety bond

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Surety Bond

1. A fee that a security holder must pay to the security's issuer, should the holder lose the physical certificate. The holder receives a replacement certificate in exchange for the surety bond. A surety bond helps reduce fraud.

2. See: Blanket fidelity bond.

surety bond

An insurance fee required before a duplicate security is issued to replace one that has been lost. The fee is approximately 4% of the market value of the security to be replaced.

surety bond

See fidelity bond.