The Uniform Commercial Code (UCC) entitles transfer agents and corporate issuers to receive signature guarantees to protect them against fraudulent and unauthorized transfers. Securities and Exchange Commission (SEC) regulations define the financial institutions eligible to provide such signature guarantees, e.g., commercial banks, brokers, credit unions, savings, and loan institutions. Signature Guarantee Programs have been developed, and eligible financial institutions which subscribe to such programs are issued “Medallion Guarantee Stamps.” Transfer agents are obligated to ensure that such stamps appear on the transfer documents and are entitled to refuse a transfer of shares if a signature is not guaranteed with a stamp.
The stamp is imprinted with special ink used to validate its authenticity. The provider of the stamp or guarantor reviews documentation provided by you, the signer, and by issuing the stamp, warrants at the time of signing the signature was genuine, and the signer was an appropriate person to endorse the signer had legal capacity to sign. The guarantor institution should verify the medallion stamp is sufficient to cover the value of assets being transacted upon. A notary stamp/seal or consulate stamp is unacceptable when transferring stock ownership.
You should be able to obtain a Medallion Signature Guarantee through your bank, broker, or another financial institution. There may be a fee to get an MSG. Contact your financial institution to determine if they offer this service, or visit msglookup.com to locate a financial institution in your area that provides the service. Alternatively, you may obtain an MSG through eSignature Guarantee, an online platform that offers signature guarantees, by visiting their website, www.esignatureguarantee.com. Use promo code BROADRIDGE for a 5% discount and free shipping of the stamped forms.