Security Insuring Agreement

The Securities Insuring Agreement (also known as Insuring Agreement E) covers losses resulting directly from extending credit on the faith of Stock Certificates, Deeds or like instruments, Certificates of Origin or Title, Guarantees, Evidences of Debt and Security Agreements, which are forged, altered, lost, stolen, or in some cases, counterfeit.

Coverage Summaries of Bond Insuring Agreements

Claims Examples

  • The bank acquires loans originated by a mortgage broker. A borrower subsequently defaults on a note and it is found that the Certificates of Deposit used as collateral had been altered.

  • The bank accepts a certificate of title as collateral for a loan. The bank relies on this collateral prior to granting the loan. The borrower defaults on the loan and it is later proven that the certificate of title is counterfeit.

Features
  • Coverage for loan participations may also be purchased.
  • The bank must have relied in good faith upon the original instrument, and the bank or its authorized representative must have had actual physical possession of the written, original instrument prior to extending the credit.

Notwithstanding any language to the contrary, nothing contained herein constitutes nor is intended to constitute an offer, inducement, promise, or contract of any kind. All coverage descriptions and claims examples are provided for informational and educational purposes only and are not a representation as to coverage for any particular claim and are not represented to be error free. Coverage for any claim is determined upon the specific facts of the claim, the terms and conditions of the policy and applicable law. For details on the coverage provided by your specific contract of insurance, please refer to your policy. Coverage is subject to underwriting guidelines and may not be available in all states. Limits may be capped for underwriting reasons. Any links to any sites which are not originated by ABA Insurance Services Inc. (ABAIS) are provided only as a courtesy and are not intended to nor do they constitute an endorsement by ABAIS of the linked materials.