ANSWERS: 2
  • A google search finds many web sites (see below) dealing with lost bearer bonds. Some are specific to particular Bonds and some seem more general. You will just have to search through them unless someone has a more direct answer. Website... http://www.google.com/search?q=lost+bearer+bond&hl=en&client=opera&rls=en&hs=O3w&start=10&sa=N
  • Yes. Equivalent to cash; if the bond has been lost or stolen; you have effectively lost it for good. Unless found... the money is gone. Negotiable Bearer Bonds carry the same risk as cold hard cash. A Bearer Bonds strength (at least for Negotiable Bonds) is in it's simplicity. No identification is required of the holder; nor does the Bond need any information to be used. The bond it's self is authenticated by the 'Trustee' which is usually the Bank that issued it. Presumably you can cash in the Bonds value at any Bank in the world, and the process will filter through it's natural Trustee. Bearer Bonds are popularized in film because a single sheet can represent a large portion of money of which can be redeemed any where in the world without need of information from the user of the Bond. Negotiable Bearer Bonds are practical and secure in their own right. Often they are used for transferring large sums of cash easily and efficiently when time is of the essence. All that is needed to transfer the bond is to simply give it to someone else. Some businesses will even require contracts be made to stipulate Bonds being issued to expedite a quick and simple transaction. It is for this purpose that there will always be a demand for Negotiable Bonds rather than the alternative of having a Registered Bond (Non-Negotiable Bond) where ownership data is maintained. In the United States the 'Bearer Bond' is illegal because of criminal abuse of transferring large sums of money between institutions or individuals. This is probably due to Taxation as Bearer Bonds cannot be tracked thus eliminating any Tax or other Bureaucratic systems that might burden the process over all. To legally issue a Negotiable Bearer Bond in the US a new Tax system must be implemented. The Fair Tax Act is the only Tax Reform which exists that can make this change. All bonds do have a limitation however. If the bond is not used (cashed in via coupons) within a specified interval then the value of the Bond falls back to the Trustee to be dispersed throughout other equity holders. A typical Bond can have a 50 year longevity. - Mike L (Jacksonville, FL)

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