Affidavit of Loss

A sworn statement describing the particulars and circumstances of the loss of securities. This affidavit is required before a Bond of Indemnity can be issued and the securities replaced.

Affidavit of Loss

A statement declaring the loss of a security. One files an affidavit of loss when the certificate of the security is stolen or destroyed in a flood or fire. The affidavit includes information such as the holder's name and the circumstances surrounding the loss. One must file an affidavit of loss in order to receive a bond of indemnity and replace the lost security.

affidavit of loss

A notarized form detailing the circumstances relating to the loss of securities. An indemnity bond and replacement securities are not made available until an affidavit of loss is accompanied by a 2% surety premium.

Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.

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