§39-33  Method of issuance and payment. A claimant for issuance of a new bond or for payment shall make writtenapplication, under oath, in such form as the director of finance shallprescribe, stating facts definitively identifying the bonds or coupons andshowing the loss, whole or partial destruction, defacement, or theft of thesame, and the ownership of the same by the person applying, and shall presentfurther evidence as the director of finance may reasonably require to establishthe identity of the bonds or coupons, their loss, whole or partial destruction,defacement, or theft, and the ownership of the same by the claimant.

The director of finance shall not provide forthe issuance of a replacement for or the payment of the lost, stolen, wholly orpartially destroyed, or defaced bond, coupon, or both, as the case may be,unless the claimant shall have executed and delivered to the director offinance a legal and sufficient surety bond or other form of surety acceptableto the director of finance in an amount equal to the loss which may be sufferedby the State, any transfer agent, paying agent, or registrar by reason ofissuing replacements or making payments mentioned in this section.  Any suretybond or other form of surety acceptable to the director of finance shall be inthe form and with sufficient surety or sureties as shall be satisfactory to thedirector of finance, and shall be conditioned to indemnify and save harmlessthe State, any transfer agent, paying agent, or registrar from any and all losson account of the bond, coupon, or both, as the case may be, so claimed to havebeen lost, stolen, wholly or partially destroyed, or defaced.  The duration ofthe surety bond or other form of surety acceptable to the director of financeshall be not less than the date upon which the bond, coupon, or both, as thecase may be, being replaced or paid, become due and payable, plus the period ofthe statute of limitations applicable to bonds and coupons.  In the case of apartially destroyed or defaced bond, coupon, or both, as the case may be, theclaimant shall surrender the partially destroyed or defaced bond, coupon, orboth, as the case may be, at the time of delivery of the replacement. [L 1988,c 28, pt of §3; am L 1989, c 86, §1]