The California lost trust deed bond is actually for a lost three conveyance. California civil code 2941.7 governs then need and requirement for this bond. Three conditions and acts most of occurred for this bond be required. First, the underlying trust deed must have been paid off. Secondly the corresponding reconveyance was never filed with the county recorder. Third, the original beneficiary can no longer be located. If those three conditions exist and the bond can be filed with the county recorder in the county where the property is located in the amount of two times the amount of the original trust deed. Once the bond is filed the reconveyance is assumed recorded. The bond is for the benefit of the title company or to the beneficiary that has a valid claim that the underlying trust deed had not in fact been satisfied. This bond is generally considered to be lower risk than a lost securities bond or lost instrument bond and normally carries a premium of 2%. For smaller loss trustee bonds all that is required to underwrite the bond is a completed and signed application.