when do you need a medallion signature guarantee
for the transfer of securities
title: Medallion signature guarantee text: a D stamp is only good for guarantee up to $250,000. Different institutions have various policies as to what type of identification they require to provide the guarantee and whether they charge a fee for such service, usually nominal. Very few guarantor institutions will guarantee the signature of a person who is not a known, established customer. While some banks no longer provide this service, many still do so, as do some other financial institutions such as savings and loan associations (a thrift) and credit unions. These institutions may provide the medallion signature guarantee at their discretion. These institutions provide title: Medallion signature guarantee text: guarantees, the person executing many legal documents does not have to sign his name in the physical presence of the issuing officer (i.e., notary public, judge, or justice). Not all medallion signature guarantee stamps are of equal value. A special coded prefix is given to each stamp, and this prefix determines how much monetary value can be guaranteed. For instance if the medallion signature guarantee is required for $400,000 worth of value, at least a C prefix is required, which is good for up to $500,000 value. If a D prefix stamp is submitted, the transaction will be rejected, because title: Medallion signature guarantee text: Medallion signature guarantee In the United States, a medallion signature guarantee is a special signature guarantee for the transfer of securities. A medallion signature guarantee is a guarantee by the transferring financial institution that the signature is genuine and the financial institution accepts liability for any forgery. A medallion signature guarantee protects shareholders by preventing unauthorized transfers and possible investor losses. A medallion signature guarantee also limits the liability of the transfer agent who accepts the certificates. A medallion signature guarantee is a binding warranty, issued by an agent of the authorized guarantor institution, that: (a) the signature was genuine; title: Medallion signature guarantee text: (b) the signer was an appropriate person to endorse, and (c) the signer had legal capacity to sign. A medallion signature guarantee is not equivalent to an American Notarial act. One American Notarial act, called an acknowledgment, is a formal declaration made before an authorized public officer (i.e., notary public, judge, or justice). It is made by a person executing an instrument who states it was his "free act and deed". The three essential components of an acknowledgment are: (a) the personal appearance before an authorized public officer; (b) positive identification; (c) the actual acknowledgment of signing. Unlike medallion signature title: Medallion signature guarantee text: clarification on their requirements for providing the stamp. Each of these institutions may have different requirements for documentation necessary. When United States citizens are outside the United States, they are typically unable to obtain a medallion signature guarantee stamp. Some financial institutions may accept the seal of a United States embassy in its place if given prior notice of the substitution. Some financial institutions outside the United States offer a medallion signature guarantee to existing customers if the financial institution has a correspondence relationship with a United States bank. The medallion signature guarantee program has existed since February 24, 1992,