Affidavit Of Loss

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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