How to Get a Gold Medallion Stamp
Many banks, savings and loan associations, credit unions and brokerage firms provide medallion signature guarantees; however, you must be an existing customer of these institutions in order to take advantage of them.
These financial institutions must belong to one of several medallion guarantee programs, such as Securities Transfer Agents Medallion Program or Stock Exchange Medallion Program, with each having a specific maximum stamp limit.
Many banks, credit unions, investment brokers and other financial institutions offer medallion signature guarantees. To provide this service successfully these businesses must be members of either STAMP or SEMP and possess appropriate imprinting equipment and surety bond coverage to provide this guarantee.
A medallion signature guarantee differs from a notary stamp in that it guarantees more than just identity of its signer; rather it is secured against financial institution assets and requires more stringent screening than can be accomplished with just an identification stamp.
Medallion signature guarantees can range in cost depending on their value; typically $50-75 from banks for $100,000 guarantees and $75 or less from credit unions for $200,000 worth. It’s essential that you know where and how to obtain one as it can come in handy for transferring shares or securities, acting as power of attorney or executor of an estate, among other situations.
If you’re selling or transferring securities contracts, stock powers or endorsed share certificates, a medallion signature guarantee may be necessary to verify who you are and assure a security transfer agent of your identity and that any assets being transferred belong to you – this special stamp used during securities transfers can only be provided by financial institutions with membership in one of three specific medallion signature guarantee programs.
Banks, credit unions and investment brokers are often the go-to providers when it comes to getting signature guarantees issued. Most will only issue them to people or businesses with ongoing customer relationships who don’t exceed the value of securities that exceeds their medallion surety bond limits. There are websites and directories listing institutions offering this service; in any event it would be wiser to contact your local bank or broker dealer as they will guide you through the process of getting one issued.
Other Financial Institutions
Selling or transferring physical certificate securities requires a special certification stamp called a medallion signature guarantee stamp to prove to transfer agents or other parties that the person signing the stock certificate endorsement or stock power is an authorized individual. Furthermore, this guarantee binds an institution providing it to reimburse any loss caused in this transaction.
Many banks and credit unions provide this service, though some may require you to already be their customer before offering this option. Some offer stamps at a nominal fee while others provide them for free.
There are private companies that sell medallion signature guarantees, as well as several directory websites listing them. It is essential that they belong to an official Medallion Signature Guarantee Program and cover certain dollar amounts up to certain limits; typically this costs around $100 per transaction.
Anyone seeking to transfer securities between accounts, such as their 401(k) when switching jobs or donating stock for charity, will most likely require legal documents be attested by someone with a medallion signature guarantee stamp – similar to having notarization done, this stamp can be obtained at various institutions including banks or credit unions as well as transfer agents and broker-dealers.
However, it should be noted that financial institutions tend to only provide this service to existing customers due to potential financial liabilities associated with providing signature guarantees. Therefore, individuals looking for medallion signatures should contact their current financial institution to see if they offer this option.
Be mindful that this process must typically be carried out in person; thus, you’ll need to visit the institution offering guarantees in person so they can verify your identity and legal authority to sign documents.