Affidavit Of Loss

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DEFINITION of 'Affidavit Of Loss'

A written statement declaring the physical loss of a security - usually through theft or destruction by fire/flood. The affidavit contains all details regarding the loss, the owner's name and any information pertaining to the security, such as serial number or date of issue. Once the statement has been made, one can issue a letter of indemnity, requesting the replacement of the security.

BREAKING DOWN 'Affidavit Of Loss'

When holding a physical record of a security, such as a stock certificate, one face's the chance of losing the copy. If the record is stolen, misplaced or destroyed, the owner is required to swear an affidavit pertaining to the loss of the item. This is an oath outlining that, to the best of the person's knowledge, the record is truly gone. If the lost copy appears after the owner received a replacement security, the original record must be forwarded to the company for disposal.

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RELATED FAQS
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    Regardless of whether a shareholder loses his or her stock certificate, that person still owns the shares. However, in order ... Read Full Answer >>
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    Before online brokers and personally-directed accounts, holding a physical stock certificate was a necessity, as this was ... Read Full Answer >>
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    While it is not necessary to hire an attorney to file bankruptcy, the rules that govern bankruptcy can be extremely complex, ... Read Full Answer >>
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