{"id":538,"date":"2014-12-10T12:17:55","date_gmt":"2014-12-10T19:17:55","guid":{"rendered":"http:\/\/abclegaldocs.com\/blog-Colorado-Notary\/?p=538"},"modified":"2025-12-03T18:03:33","modified_gmt":"2025-12-04T01:03:33","slug":"medallion-signature-guarantee","status":"publish","type":"post","link":"https:\/\/www.abclegaldocs.com\/blog-Colorado-Notary\/medallion-signature-guarantee\/","title":{"rendered":"Medallion Signature Guarantee"},"content":{"rendered":"<h1 style=\"text-align: justify;\"><a href=\"https:\/\/www.abclegaldocs.com\/blog-Colorado-Notary\/wp-content\/uploads\/Medallion-signature-guarantee-stamp-320x200.jpg\"><img decoding=\"async\"  class=\"alignleft size-full wp-image-3923\" src=\"data:image\/gif,GIF89a%01%00%01%00%80%00%00%00%00%00%FF%FF%FF%21%F9%04%01%00%00%00%00%2C%00%00%00%00%01%00%01%00%00%02%01D%00%3B\" data-layzr=\"https:\/\/abclegaldocs.com\/blog-Colorado-Notary\/wp-content\/uploads\/Medallion-signature-guarantee-stamp-320x200.jpg\" alt=\"Medallion signature guarantee stamp\" width=\"320\" height=\"200\" \/><\/a>Medallion Signature Guarantee<\/h1>\n<p style=\"text-align: justify;\">A <strong>Medallion signature guarantee<\/strong> is needed when you are selling or transferring <strong>securities<\/strong> (such as stocks, bonds, mutual funds) and you have a physical <strong>certificate<\/strong> to sign.<\/p>\n<p style=\"text-align: justify;\">A <strong>notary<\/strong> does not provide a <strong>Medallion Signature Guarantee<\/strong>.\u00a0 A notary is a <strong>public official<\/strong> and <strong>witness<\/strong>.\u00a0 A <strong>signature guarantee<\/strong> is not an authorized notary act.<\/p>\n<p style=\"text-align: justify;\">Banks, credit unions and brokerage firms that choose to join the program can provide the <strong>Medallion Signature Guarantee<\/strong>.\u00a0 They must pay an annual membership fee and use a special Medallion stamp with special ink for added security.<\/p>\n<p style=\"text-align: justify;\">If you do not have an existing account, you may need to open a new account and wait for 60 days or more to establish an ongoing customer relationship before you can get a signature guarantee.<\/p>\n<p style=\"text-align: justify;\"><!--more--><\/p>\n<p style=\"text-align: justify;\">The purpose of the <strong>signature guarantee<\/strong> is to prevent <strong>forgery<\/strong> and <strong>fraud<\/strong>.\u00a0 When you sell or transfer a security, the <strong>transfer agent<\/strong> keeps a record or ledger of the transfer of ownership.\u00a0 To help to ensure that the transfer is <strong>authentic<\/strong>, the transfer agent will require a <strong>signature guarantee<\/strong>.<\/p>\n<p style=\"text-align: justify;\">When you open an account at a bank or brokerage firm, you sign an application form and maybe a signature card.\u00a0 A copy of your <strong>signature<\/strong> is kept on file.\u00a0 If you need a <strong>signature guarantee<\/strong>, the best place to go is to a bank or brokerage firm where you have an account.\u00a0 They can compare your <strong>signature<\/strong> on the certificate you are transferring against the signature they have on file.\u00a0 Then they can add the <strong>Medallion signature guarantee<\/strong> stamp.\u00a0 They can be held liable if the signature is a forgery.<\/p>\n<h2 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"Medallion_Signature_Guarantee_Programs\"><\/span>Medallion Signature Guarantee Programs<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p style=\"text-align: justify;\">There are several <strong>Medallion guarantee<\/strong> programs.\u00a0 They are administered by Kemark Financial Services, Inc. at <strong><span style=\"text-decoration: underline;\"><a href=\"https:\/\/kemark.com\" target=\"_blank\" rel=\"noopener noreferrer\">kemark.com<\/a><\/span><\/strong>.\u00a0 The <strong>Securities Transfer Agents Medallion Program<\/strong> (<strong>STAMP<\/strong>) includes more than 7,000 U.S. and Canadian financial institutions.<\/p>\n<p style=\"text-align: justify;\">If a financial institution is not a member of a recognized <strong>Medallion Signature Guarantee<\/strong> program, it would not be able to provide a signature guarantee.\u00a0 If you are not a customer of a participating financial institution, it is likely the financial institution will not guarantee your signature.<\/p>\n<p style=\"text-align: justify;\">You can avoid having to get a signature guarantee by having your securities held in <strong>street name<\/strong>, meaning that your securities are held in the name of your <strong>brokerage firm<\/strong>, on your behalf, instead of in your name.<\/p>\n<h2 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"Medallion_Surety_Bond_Limits\"><\/span>Medallion Surety Bond Limits<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p style=\"text-align: justify;\">A medallion signature guarantee must cover the full amount of the security that is being transferred.\u00a0 There are different surety bond coverage levels available.\u00a0 Make sure that the guarantee coverage amount is equal to or greater than the transaction amount.<\/p>\n<p style=\"text-align: justify;\">If the value of the security is near a coverage limit and rising, you may need to use a higher surety limit to maintain full coverage while the transfer is being completed.<\/p>\n<p style=\"text-align: justify;\">An alpha prefix (letter) in the medallion signature guarantee stamp indicates the maximum coverage amount of the surety bond carried by the guarantor as follows:<\/p>\n<p><strong>Surety Limits<\/strong><\/p>\n<p>Alpha Prefix\u00a0A: $1,000,000<br \/>\nAlpha Prefix\u00a0B: $750,000<br \/>\nAlpha Prefix\u00a0C: $500,000<br \/>\nAlpha Prefix\u00a0D: $250,000<br \/>\nAlpha Prefix\u00a0E: $100,000<br \/>\nAlpha Prefix\u00a0F: $100,000 (credit unions, per transaction)<br \/>\nAlpha Prefix\u00a0X: $2,000,000<br \/>\nAlpha Prefix\u00a0Y: $5,000,000<br \/>\nAlpha Prefix\u00a0Z: $10,000,000<\/p>\n<p style=\"text-align: justify;\">Notice the example stamp impression at the top of the page shows Alpha Prefix X.<\/p>\n<h2 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"Find_a_Local_Medallion_Program_Member\"><\/span>Find a Local Medallion Program Member<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p style=\"text-align: justify;\">To find a participating member of the Medallion program in your city, you can do a lookup by city or zip code for a nearby financial institution at\u00a0<a href=\"https:\/\/www.msglookup.com\/search.html\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"text-decoration: underline;\"><strong>Medallion Signature Guarantee search<\/strong><\/span><\/a>.<\/p>\n<p style=\"text-align: justify;\">You can also view a list of <span style=\"text-decoration: underline;\"><a href=\"https:\/\/www.abclegaldocs.com\/blog-Colorado-Notary\/wp-content\/uploads\/Medallion-Members-Colorado-Springs-2018-02.pdf\" target=\"_blank\" rel=\"noopener noreferrer\"><strong>Medallion Members in Colorado Springs<\/strong><\/a><\/span>.<\/p>\n<p style=\"text-align: justify;\">Visit our website for <strong><a href=\"https:\/\/www.abclegaldocs.com\/blog-Colorado-Notary\/mobile-notary\/\" target=\"_blank\" rel=\"noopener noreferrer\" data-slimstat-async=\"false\" data-slimstat-callback=\"false\" data-slimstat-tracking=\"false\" data-slimstat-type=\"2\" data-slimstat-clicked=\"false\">Colorado Springs Mobile Notary<\/a><\/strong>\u00a0services or <strong><a href=\"https:\/\/www.abclegaldocs.com\/blog-Colorado-Notary\/colorado-notary-training\/\" target=\"_blank\" rel=\"noopener noreferrer\" data-slimstat-async=\"false\" data-slimstat-callback=\"false\" data-slimstat-tracking=\"false\" data-slimstat-type=\"2\" data-slimstat-clicked=\"false\">Colorado Notary Training<\/a>\u00a0<\/strong>classes.<\/p>\n<p style=\"text-align: justify;\">[Last-Modified Date 2020-04-24] added surety bond limits<\/p>\n<p style=\"text-align: justify;\">\u00a9 Copyright 2014 ABC Legal Docs, LLC All rights reserved. Do not copy. Citations welcome. Terms of Use apply.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Medallion Signature Guarantee A Medallion signature guarantee is needed when you are selling or transferring securities (such as stocks, bonds, mutual funds) and you have a physical certificate to sign. A notary does not provide a Medallion Signature Guarantee.\u00a0 A notary is a public official and witness.\u00a0 A signature guarantee is not an authorized notary act. Banks, credit unions and brokerage firms that choose to join the program can provide the Medallion Signature Guarantee.\u00a0 They must pay an annual membership fee and use a special Medallion stamp with special ink for added security. If you do not have an existing <\/p>\n","protected":false},"author":1,"featured_media":3923,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[1118,12],"tags":[842,452,844,840,835,134,843,545,838,5,839,199,212,845,2928,841,22],"class_list":["post-538","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-legal-terms","category-notary-law","tag-authentic","tag-bank","tag-brokerage-firm","tag-certificate","tag-forgery","tag-fraud","tag-kemark","tag-medallion","tag-medallion-signature-guarantee","tag-notary","tag-securities","tag-signature","tag-stamp","tag-street-name","tag-surety","tag-transfer-agent","tag-witness","has_thumb"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.6 - 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