Medallion Signature Guarantee Stamp
Medallion Signature Guarantees (MSGs) are provided by financial institutions such as banks, brokerage firms and stock exchange member firms; some also offer them as customer services.
Most MSGs are provided by banks that belong to an approved medallion program and use green high-security ink to ensure that signatures on MSGs are genuine and that any forgeries can be held against them by accepting liability for them.
It’s a form of security
Signature guarantees and medallion stamps are two forms of authentication used to safeguard individuals from fraudulent activities. Both methods use financial documents signed by signatories as evidence that they exist and verifying who signed them; both services can typically be provided through banks and credit unions; although in certain instances additional documentation may be needed to authenticate a signer.
A medallion stamp is an alternative method of verifying signatures at financial institutions. Backed by assets belonging to the bank, its use requires thorough screening. While often confused with notary seals, medallion stamps differ significantly in functionality.
To obtain a medallion signature guarantee, it is necessary to find a bank that participates in the STAMP program – such as commercial banks, credit unions or broker-dealers. Each financial institution must pay a membership fee as part of becoming members and must also be bonded before using high security green ink and document readers to authenticate a medallion signature guarantee.
It’s a legal document
A medallion signature guarantee stamp is an iconic green stamp used to verify signatures on securities documents. It verifies that they were signed by those listed and assumes liability in case of forgery by institutions affixing it, making this document required in many securities transactions; usually costing $50 from credit unions and $75 from banks for $100,000 guarantees respectively.
Stamps are special imprints made with high security ink, designed to increase protection and provide peace of mind. In general, to receive one from any bank or financial institution that provides it, an individual must already be an existing customer; otherwise they risk exposure from liability issues which means many individuals must travel for this stamp. Unlike notary stamps however, medallion signature guarantees are backed up with bank assets so more reliable security.
It’s a gift
Medallion Signature Guarantee Stamps provide an easy way to verify your identity on important documentation, helping prevent fraud when selling or transferring North American securities across borders. Similar to a notary stamp, Medallion Signature Guarantee Stamps require certain forms of ID be presented for verification – for instance a Deed Poll showing your name change may not suffice as proof for verification with these stamps.
Medallion signatures can be obtained from banks, credit unions and brokerage firms; however, many institutions are reluctant to provide it due to its potential financial liabilities. Instead, these services tend to only be made available after longstanding customer relations have taken place as it takes time for them to verify your identity and verifying you as part of its identity verification processes.
It’s a way to avoid identity theft
Signature guarantees and medallion stamps are fraud-preventative tools used to verify the authenticity of documents. These seals or stamps are often utilized during financial and legal transactions to prevent identity theft. To obtain one, a valid form of ID (typically passport or driving license) will need to be presented; additional forms should also be carried in case you become lost or arrested.
Banks and credit unions that offer medallion signature guarantees may provide this service; however, these institutions tend to limit it’s use among their long-term customers for a small fee.
Transfer agents often require clients to present a medallion signature guarantee when transferring securities. This safeguard reduces their liability in case documents turn out to be falsified; its bright green stamp certifies that each signatory on the document is an authorized signatory who accepts responsibility in case of forgery.
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