What must be guaranteed by a lost instruments bond?

A lost instruments bond serves as a type of surety bond that provides financial protection against the loss or theft of specific financial instruments, such as checks or promissory notes. The primary purpose of this bond is to guarantee that payment will be made for these lost instruments.

When an individual or entity claims that a financial instrument has been lost, the bond assures the party responsible for payment—often a financial institution or a company—that they will meet their obligations despite the loss. If the instrument is indeed lost and the bond is invoked, the surety company pays the rightful owner or issuer in line with the terms of the bond.

In this context, the emphasis is on the payment aspect concerning lost shipments or lost financial documents, which directly aligns with guaranteeing compensation for items that cannot be recovered due to their lost status. Other options, while related to financial security or obligations, do not specifically pertain to the nuances of lost instruments, making option B the most appropriate choice.