An issuing authority shall issue a replacement bond for an unmatured bond which has been lost, destroyed or defaced when furnished with:

1. (a) Proof of ownership;
2. (b) Proof of loss or destruction or, in the case of a defaced bond, the bond and any coupons issued in connection therewith;
3. (c) Adequate security to indemnify the issuing authority and the bank or banks at which the bond is payable against any loss they may suffer on account of such replacement bond; and
4. (d) Payment of the cost of preparation of the replacement bond.

(from Ch. 17, par. 6708)

(Source: P.A. 77-205.)