(a) To replace a Certificate because of loss, theft, destruction, mutilation, or defacement, the Registered Holder must:
- (1) Give the FTA information about the Certificate and the facts relating to the claim;
- (2) File an indemnity bond acceptable to SBA and the FTA with a surety to protect the interests of SBA and the FTA;
- (3) Pay the FTA its fee to replace a Certificate; and
(4) Use an affidavit of loss (form available from the FTA) to report:
- (i) The name and address of the Registered Holder (and the name and capacity of any representative actually filing the claim);
- (ii) The Certificate by Pool number, if applicable;
- (iii) The Certificate number;
- (iv) The original principal amount;
- (v) The name in which the Certificate was registered;
- (vi) Any assignment, endorsement or other writing on the Certificate; and
- (vii) A statement of the circumstances of the theft or loss.
- (b) When the FTA receives notice of the theft or loss, it will stop any transfer of the Certificate. The Registered Holder must send to the FTA all available portions of a mutilated or defaced Certificate. When the Registered Holder completes these steps, the FTA will replace the Certificate.