Mutilated Security

Mutilated Security - Mutilated Security is a damaged security that prevents a person from identifying the original issuer of the security or other necessary identifying information. If a seller is seeking to transfer the mutilated security, certain steps will have to ensure the buyer that the security is able to transfer and that all rights associated with the security transfer after the sale despite being able to identify the original issuer. The certificate name of the issue, the issuer, or some other identifying detail is unreadable. A stock or bond certificate that because of irreparable damage is unable to transfer to the owner.