Affidavit of Loss
A sworn legal declaration submitted by a registered shareholder to a transfer agent certifying that a share certificate has been lost, stolen, or destroyed, typically required before a replacement certificate or book-entry position is issued.
Full Definition
An affidavit of loss is a notarised document in which a shareholder attests under oath that they no longer possess a certificated security due to loss, theft, or destruction. Transfer agents require this document, typically together with a surety bond (open penalty bond) and a Medallion Signature Guarantee, before issuing a replacement certificate or converting the position to book-entry. Editors should note that 'affidavit of loss' is distinct from a 'lost certificate indemnity bond' or 'surety bond', which is a separate accompanying document. The phrase should not be abbreviated in formal shareholder communications.
Usage
Usage note: Do not abbreviate in shareholder-facing copy. Always list as part of a set of required documents: affidavit of loss + surety bond + Medallion Signature Guarantee.
In Context
- "To obtain a replacement for your lost certificate, you must complete a notarised affidavit of loss and submit it along with an open penalty bond." — Transfer agent lost certificate instructions
- "Processing of the affidavit of loss was delayed because the submitted document lacked the required notarisation." — Transfer agent correspondence