Medallion signature guarantee - wikipedia Medallion signature guarantee In the United States, a medallion signature guarantee is a special signature guarantee for the transfer of securities. Contents 1 Guarantee 2 Prefixes 3 Financial institutions ' policies 4 Prevalence 5 Outside the United States 6 History 7 References Guarantee 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 ; ( 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 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 ). Prefixes 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 a D stamp is only good for guarantee up to $250,000. Often Computershare 's paperwork only informs of a need for a medallion signature guarantee, but it does not specify anything about the necessity of certain prefixes. Financial institutions ' policies 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. Prevalence 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 clarification on their requirements for providing the stamp. Each of these institutions may have different requirements for documentation necessary. Outside the United States 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. History The medallion signature guarantee program has existed since February 24, 1992, when Securities and Exchange Commission 's Rule 17 Ad - 15 went into effect. The medallion signature guarantee program was implemented in order to protect investors, treat financial institutions equitably, increase the efficiency of transferring securities, and reduce risk. Until then, financial institutions had cumbersome and inconsistent policies regarding certificates presented to a transfer agent to change ownership. At the time of its establishment, there were three signature guarantee programs, namely the New York Stock Exchange Medallion Signature Program, the Stock Exchanges Medallion Program, and the Securities Transfer Agents Medallion Program, each of which were administered by different entities. References Jump up ^ `` 17 CFR Part 240 : Acceptance of Signature Guarantees From Eligible Guarantor Institutions ''. Federal Register. Vol. 57. No. 7. January 10, 1992. Jump up ^ `` 17 CFR 240.17 Ad - 15 - Signature guarantees ''. Code of Federal Regulations. via Legal Information Institute. Cornell University. Retrieved March 9, 2018. ^ Jump up to : Doyle, William ( April 21, 1994 ). `` Guarantees of signatures on transfers easy to obtain ''. King Features Syndicate. The Washington Times. p. B8. Piombino, Alfred E. ( 2011 ). Notary Public Handbook : Principles, Practices & Cases. National Edition. East Coast Publishing. ISBN 978 - 0 - 9445606 - 9 - 3 `` U.S. Department of State telegram to all U.S. diplomatic and consular posts abroad concerning medallion stamp guarantees ''. Digest of International Law. United States Department of State. May 21, 2001. Retrieved November 17, 2009. `` Signature Guarantees : Preventing the Unauthorized Transfer of Securities ''. United States Securities and Exchange Commission. Retrieved November 15, 2013. This article incorporates public domain material from websites or documents of the United States Department of State. Retrieved from `` https://en.wikipedia.org/w/index.php?title=Medallion_signature_guarantee&oldid=839662430 '' Categories : Securities ( finance ) Identity documents Hidden categories : Wikipedia articles incorporating text from the United States Department of State Talk Contents About Wikipedia Add links This page was last edited on 4 May 2018, at 21 : 29 ( UTC ). About Wikipedia

Question: where do i get a medallion signature guarantee stamp
Answer: an agent of the authorized guarantor institution