The Medallion Signature Guarantee Seal

Have you ever wondered what the purpose of the Medallion Signature Guarantee seal is and how it differs from a notarization? Signature guarantees and notarizations are both used to verify a signer's identity, but they're two unique processes, each with their own purpose. As a Virginia notary public, I recently had the opporunity to learn a few things about the banking seal called the Medallion Signature Guarantee, and I'll relay the story here. Situation An elderly woman called on me to see if I could notarize a couple of financial documents that her banking institution required that she sign. Since she had recently taken a fall and broken her wrist, she was now a patient in a rehab facility. She wanted her son to have the ability to transfer securities for her. First, she had to sign a financial power of attorney and get it notarized so that her son could take charge of transferring those securities. Second, her bank told her she needed to sign some bank forms and that they needed a medallion signature seal, so she had to sign those forms in front of her banking officer. Solution: The bank offered to send the banking representative who this woman had been dealing with, to her rehab facility so she could sign the forms directly in her presence. The client asked me to be there at the same time to notarize her financial power of attorney. We took care of both tasks and the signer and her son were grateful that they could save time and get it all done at once. I did a little research, and here's a summary of what I learned about this process. What is a medallion signature guarantee and why can't the notary handle it? The medallion signature guarantee is one of several special certification stamps that guarantees a signature that authorizes a transfer of securities is authentic. A medallion signature guarantee is required when an owner wants to sell or transfer securities (stocks or bonds) held in physical certificate form. If an owner holds securities through a broker, they will not need this to sell or transfer the securities. It is not one of the notary's duties to issue a medallion signature guarantee; this duty is reserved for qualified individuals at authorized financial institutions. Medallion services are often offered free of charge for their banking customers. This service can only be provided by certain banking and financial institutions (commercial banks, savings banks, credit unions, or broker dealers) that participate in any one of the following three programs: - security transfer agents medallion program - stock exchange medallion program - New York Stock Exchange Medallion Signature Program What is its Purpose? This seal is required for the sale, assignment, transfer, or redemption of securities such as stocks, bonds, and mutual funds. It confirms that the signature authorizing the sale or transfer is genuine and that the signer has the legal capacity and authority to sign the document. The financial institution must be a member of a recognized medallion signature guarantee program, and the signer must be a customer of the participating financial institution. Procedure Like the notarization process, the medallion signature guarantee mut be completed in person, as it confirms the signer's identity, signature, and legal authority to transfer securities. If the signer is acting in a capacity other than that of the registered owner, such as the executor, trustee, attorney-in-fact or other legal capacity, the following documents showing proof of authority are required: trust agreement, power of attorney form, court-appointed papaerwork, or corporate resolutions. In this case the son would act as the attorney-in-fact, so he had to get his Acceptance of Assignment form notarized by me. You will need to contact the bank, credit union, or other financial firm you have an account with to inquire if they participate in the Medallion Signature Guarantee Program. When the client signs the form, the bank officer stamps the medallion signature guarantee on the transfer near the signature, and then they sign their name over the stamp. This procedure prevents an unauthorized transfer. The medallion signature guarantee is an assurance by the financial institution that guarantees the transaction is genuine and legitimate. The signature guarantor accepts liability if there is any fraud or forgery. ---- If you have documents that need both a notarization and a medallion signature guarantee, consider taking care of both in one appointment, making the process simpler and easier for everyone. If you're looking for a reliable and experienced mobile notary who travels to you in Northern Viriginia, you can call on me, Emerald Mobile Notary Service, to help. I'm a full-time mobile notary who travels to your home, office, or healthcare facility to notarize real estate, financial, or legal documents. I'm available Mon-Fri, 8am-8pm, and Sat-Sun, 8am-5pm. June Siegel-Hill Emerald Mobile Notary Service 703-577-5484 www.emeraldmobilenotary.com