If a Medallion Signature Guarantee is dated, it is only good for that date. As this could be certificates worth millions of dollars, the financial institution must be very careful to establish the identity of the person whose signature they are guaranteeing. The organization that guarantees the authenticity of the signature is liable for the financial value of the transaction. The Medallion Signature Guarantee should not ever be confused with a notary public. This program includes: STAMP (Securities Transfer Agents Medallion Program} SEMP (Stock Exchanges Medallion Program) or MSP (New York Stock Exchange Medallion Signature Program). In order to be an eligible guarantor institution that is a participant in a signature guarantee program, the application must be approved by the Securities Exchange Commission (SEC), STA, and STC. That liability is on the financial institution that accepted the signature and put the Medallion stamp on the certificate. Transfer agents insist on signature guarantees because they limit their liability and losses if a signature turns out to be forged. This process protects the person who owns the stock or certificate by making it harder for someone to forge your signature. You'll probably need to get your signature "guaranteed" before a transfer agent will accept the transaction. If you hold securities in physical certificate form and want to transfer or sell them, you will need to sign the certificates or securities powers. The most common use for the Medallion signature guarantee is for transferring or selling securities. Medallion signature guarantee is one of them. There are some, though, that are unique to our industry. Some, like IRA (Individual Retirement Plans), 401K plans, and cash management services can also be done by other financial corporations. A financial institution provides many services for its customers and members.
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