An Affidavit of Loss is a legal document declaring, among others, the physical loss of financial securities and stock certificates by theft, loss, or destruction. The Affidavit of Loss will contain all details regarding the lost securities, such as the name of the security holder and any information pertaining to the security.
When someone purchases financial securities such as stocks and bonds, they are issued certificates confirming ownership. These financial documents must be held in a safe place because they provide proof of ownership, which is very important when selling them. However, losses do occur. People lose these documents all the time. As soon as the holder recognizes that a security is missing, an Affidavit of Loss should be filed.
The Affidavit of Loss describes the security in question, providing as much supporting documentation as possible. It also verifies the identity of the owner and provides a description of the situation which led to the loss.
An Affidavit of Loss can also be filed for many other losses, including:
• Drivers Licenses
• Certificate of Deposit
• Promissory Notes
When executing an Affidavit of Loss, it is important that the affiant attests that the materials of the Affidavit of Loss was not confiscated by officers of the law or officers of an issuing body or agency due to any violation of a law, statute, or other rules and regulations. A copy of a police report or a copy of the security should be attached to a Affidavit of Loss document at all times.
When the Affidavit of Loss is received and processed, a new copy of the security will be issued. It may have markings which indicate that it is a replacement for the lost or stolen security. Should the original turn up at some point in the future, it needs to be forwarded to the issuer for destruction, with a document explaining that it was thought lost and later recovered.