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TeachMeFinance.com - explain Lost or stolen securities historic definition...
Lost or stolen securities -- A coupon bond payable to bearer
or a stock certificate assigned in blank is good in the hands
of an innocent and bona fide holder who acquires it by honest
purchase at a fair market price without knowledge that it was
fraudulently obtained by any previous holder even though it
mav have been lost bv or stolen from its owner. The recovery of a lost or stolen bond or stock certificate
can rarely be accomplished unless it is found in the hands of
the finder or of the thief or his accomplice or some person
who has obtained possession of it by fraud or under circumstances
which will convict him of knowledge or suspicion of
fraud on the part of the one from whom he received it.
The fact that a lost or stolen bond or stock certificate has
been advertised by its number does not invalidate the title of
an innocent holder as it cannot be held that the purchaser of
a bond or a stock certificate is bound to have knowledge of the
advertisement.
A registered bond is without coupons and is filled in with
the name of the registered owner and is payable to him or his
assigns. It is not available to any other person until properly
assigned or transferred by the registered owner. If a registered
bond or a stock certificate not assigned in blank is lost
or stolen the owner can secure a new bond or certificate by
furnishing a bond of indemnity.
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