Medallion Stamps and Medallion Signature Guarantees

What is a gold medallion stamp

Signature guarantees (also referred to as medallion stamps) serve to verify and limit transfer agent liability, while verifying identity. Certified banks typically offer these guarantees, which are commonly required when transferring securities or investments.

Financial institutions usually only issue signature guarantees to existing customers due to risks and liabilities involved, so you may find these institutions by visiting your local bank, credit union or other financial institution.

It’s a guarantee

The medallion stamp is a special certification that ensures that any signature authorizing the transfer of securities is genuine, often required when selling or transferring physical certificates of securities held by an owner. It helps limit illegal transfers and forgery and can be obtained from banks, credit unions, savings associations, or any financial institutions participating in the STAMP program.

Stamps are numbered and carry a special code that indicates their monetary value, making them suitable for shares or bonds and distinct from notary seals. Affixed to documents using medallion signature guarantees, each stamp can remain in use for two to five business days before becoming invalid.

Finding an account-less customer the medallion stamp they need can be challenging, given that financial institutions that issue stamps are exposed to significant liabilities when providing this service. Furthermore, becoming a medallion guarantor requires formal certification by Kemark as well as significant staff training.

It’s a security

Medallion signature guarantees are stamps used to authenticate and verify that an authorized transfer of securities has occurred, as well as verify the legitimacy of those involved in making that transfer. They are often required by transfer agents of publicly held companies, mutual funds and insurance companies as well as for divorce settlement or death.

Individuals seeking Medallion signature guarantees must first locate an institution participating in this program; then request that it affixes the stamp to their document – this service is usually free for long-term customers of participating financial firms. Unlike a notary stamp, medallion signature guarantees are backed by actual assets held by financial firms that issue them and thus offer greater security against unauthorized transfers and reduce investor risks; they also feature unique security ink to make copies difficult.

It’s a form of identification

Medallion signature guarantees are required when transferring securities such as stocks, bonds, mutual funds and unit investment trusts. Banks, credit unions and brokerage firms that participate in the Securities Transfer Agents Medallion Program (STAMP) provide these guarantees; their bright green color signifies their authenticity as proof against forgeries by signing documents such as stock powers or certificates that bear them. Any institution stamping them also assumes liability in case any signer commits fraud.

Signature verification is an integral component of many transactions, including notarization of loan documents. However, it is vital to understand the difference between signature guaranteeing and notary stamping as these processes serve different functions.

Individuals should always inquire with their financial institutions regarding how to secure a medallion signature guarantee, and allow ample time for processing times to complete this task. Not all financial institutions offer this service, yet even those that do may take several days.

It’s a way to transfer assets

A medallion signature guarantee provides financial document verification services. This bright green stamp verifies that signatures on stock powers or stock certificates are genuine and authentic; unlike notary stamps, which rely solely on bank assets for security, medallion signature guarantees are backed by assets owned by banks providing the guarantee – helping prevent unauthorized transfers and helping prevent theft of assets by third parties. A medallion signature guarantee may also be necessary when moving securities between accounts or transferring 401(k) plans when changing jobs, gifting securities as gifts, or when giving securities as gifts or when deceased individuals require transference of ownership rights over to court-appointed representatives requiring transference of ownership rights from their previous owners to an appointed court representative.

Many financial institutions provide medallion signature guarantees to existing customers at no charge; some even charge a small fee. The stamp can be used to verify signatures on physical certificates of shares, bonds, savings bonds or warrants; some transfer agents may reject transactions that do not include this endorsement with an accompanying medallion signature guarantee stamp.

Raymond Banks Administrator
Raymond Banks is a published author in the commodity world. He has written extensively about gold and silver investments, and his work has been featured in some of the most respected financial journals in the industry. Raymond\\\'s expertise in the commodities market is highly sought-after, and he regularly delivers presentations on behalf of various investment firms. He is also a regular guest on financial news programmes, where he offers his expert insights into the latest commodity trends.

Categorised in: