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Care of Securities
Source: Encyclopedia of Banking & Finance (9h Edition) by Charles J Woelfel
(We recommend this as work of authority.)

There are two principal means to provide for the safekeeping of securities:  renting a safe deposit vault or box; and placing them under the custodianship of a bank or trust company.  In the former arrangement the securities remain under the depositor's exclusive supervision and control, while in the latter they are in a bank or trust company's custody but always immediately available and subject to the orders of the owner.  There has been no known instance of loss of securities deposited in a safe deposit vault where the depositor has a covering contract.  Modern construction of safe deposit vaults offers too many obstacles for the operations of even the most scientific burglars.  For all practical purposes these vaults are fire, water, burglar, and mob proof.  No such guarantees are provided by ordinary office safes, some of which even fail to provide for protection against fire.

Wherever securities may be kept, the holder should make a detailed descriptive record to include number, denomination, name of issue, date of issue, due date, name of issuing organization, and name of person to whom issued, if any.  In case of loss, theft, or destruction by fire or other cause, means are then available whereby the securities may be identified, recovered, or replaced.  If securities are deposited in a safe deposit box or held in custody by a bank or trust company, this list will be useful and perhaps save trips to the bank when the depositor wishes to know dividend or interest dates, or numbers in case bonds are called for previous redemption.

Registered bonds offer means of protection against loss since interest and principal are payable only to the person in whose name the bonds are registered on the books of the issuing organization.  Notice of loss, however, should be made promptly in order to prevent assignment and transfer.  There is no way of protecting the owner of coupon bonds in case of loss, although quick action and cooperation with the Treasury Department or Federal Reserve bank sometimes leads to the recovery of lost government bonds.  In case these bonds are lost, the owner should immediately notify the Secretary of the Treasury in Washington and Federal Reserve bank of his or her district, giving a full description.  The same notification should be sent in case of loss of registered bonds.  Upon satisfactory proof of loss and the filing of an indemnity bond, a duplicate will be issued.  Duplicates for coupon or registered bonds destroyed, wholly or in part, or so defaced as to impair their value to the owner, will be issued upon fulfilment of the requirements of the Secretary of the Treasury, including the filing of an indemnity bond.

In case stocks are lost or stolen, notify the issuing corporation and place a STOP TRANSFER ORDER with its transfer agent.

In case of loss of a municipal bond, notify the treasurer of the municipality and the distributing investment banking house.  If a corporation bond is lost, notify the treasurer of the corporation.  If a real estate mortgage is lost, notify the attorneys who executed it.  One purpose of recording acts is to preserve on public file the evidence of real estate conveyances, including mortgages.  

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