What is a Medallion Signature Guarantee?
Medallion Signature Guarantee (MSG) stamps and certificates serve to validate your signature on financial documents. MSGs are usually required when moving stocks or bonds between accounts or when gifting investments to another party.
Signature guarantees may be obtained from banks, credit unions, and broker dealers who participate in the STAMP program. To qualify, an active account with one of these institutions must exist.
It’s a stamp
If you are administering an estate and need to transfer shares on public stock markets, it may require a Medallion Signature Guarantee (MSG). This stamp features green imprinting with special security ink and is issued by financial institutions like banks, credit unions and credit card companies – it doesn’t come free though; these institutions only issue them to long-established customers with well-established histories for a small fee.
Though similar, Medallion Signature Guarantees (MSGs) differ significantly from notary seals in their purposes and procedures. A notary stamp only verifies signer identity through reviewing driver’s license or state-issued ID cards; by contrast, an MSG goes further to guarantee legal ownership of securities being transferred and to hold financial institutions liable in case of forgeries; they’re typically attached to stock power certificates and endorsed stock certificates and provided through STAMP programs that use bar code scanners and special ink readers to help prevent fraudstering of such deals.
It’s a guarantee
Medallion signature guarantees are used to transfer securities such as stocks and bonds. A medallion signature guarantee serves as an authentication seal that verifies whether a signature authorizing transfer of securities is genuine. Banks, savings and loan associations, investment brokers and credit unions often offer such guarantees to their customers.
Assemble all documents and verify your identity before approaching financial institutions to ensure you have all necessary files on file; once all paperwork is ready, getting your signature guarantee usually only takes several days.
Although medallion signature guarantees and notary stamps share similar functions and requirements, they differ in both function and requirements. Although both acts serve to prevent fraud-prevention measures, notary stamps verify signers’ identities while medallion signature guarantees verify the authenticity of documents – the distinction can be key when managing financial transactions and legal documents.
It’s a certificate
Some institutions require customers to obtain a gold medallion signature guarantee as part of their agreement. Since this service can be risky for financial institutions, typically this service will only be extended to long-term customers that already have established relationships.
A medallion signature guarantee stamp issued by your institution guarantees the authenticity and legal capacity of endorsers for transactions. It contains a hidden security barcode which can only be read with special stamp readers available from transfer agents; additionally it comes with an archived sample signature for verification purposes.
To obtain a gold medallion signature guarantee, you will need to locate a bank, credit union or brokerage firm offering this service. In order to submit the necessary documentation (current government-issued ID card, completed transfer forms and securities), these institutions will review it all and stamp your documents accordingly.
It’s a document
Medallion Signature Guarantee (MSG) stamps provide special certification stamps that guarantee signatures authorizing transfers of securities such as stocks or bonds to another individual. They are often required by banks and financial institutions offering this service, although each may have specific policies regarding which documents qualify and how long an MSG will remain valid.
For individuals to obtain a medallion signature guarantee, the first step must be opening an account with the financial institution that offers it. Once registered with this financial institution, their stamp can then be used to authenticate documents signed with any signature; its barcode and special green ink help prevent forgeries while its unique prefix limits the maximum guarantee amount it can offer. While similar processes such as notary stamping may appear similar, signature guarantees do more than verify the signer’s identity; rather they confirm document authenticity as well.
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