What is a Medallion Stamp Anyway? How is it different from a Notary Stamp?
A medallion signature guarantee (MSG) is a special type of guarantee, often provided by financial institutions, that verifies the authenticity of a signature on a document, particularly when transferring securities or other financial assets. It is not the same as a notary stamp, as it verifies not just the signature but also the legal capacity and authority of the signer.
Here's a more detailed explanation:
What it does:
- Confirms Legal Capacity: Guarantees that the person signing has the legal right and authority to transfer the assets.
- Reduces Risk: Protects against fraudulent transfers of securities and other financial assets.
- Verifies Signature Authenticity: Ensures the signature on a document is genuine and not forged.
Who provides it:
- Financial Institutions: Primarily banks, credit unions, and trust companies that are members of a recognized Medallion Signature Guarantee program.
- Notaries Public cannot provide a Medallion Signature Guarantee.
When it's needed:
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Transferring Securities: Often required when transferring ownership of stocks, bonds, or other securities.
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Transferring Between Accounts: Frequently needed when transferring assets between different types of accounts or institutions.
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Specific Transactions: May be required for specific transactions involving estate settlements, trust transfers, or other situations involving the transfer of assets.
Key Differences from a Notary Stamp:
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Scope of Guarantee: A notary stamp only verifies the identity of the person signing the document, while a medallion signature guarantee verifies both the signature and the legal capacity of the signer, as well as the authenticity of the transfer.
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Use Cases: Notary stamps are used for a broader range of legal documents, while medallion signature guarantees are primarily used for securities transfers.
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Authority: Notaries are authorized by state law, while medallion signature guarantees are provided by financial institutions participating in a specific program.
For more information and to find potential banks who can help you with this in your area, check out the Medallion Signature Guarantee Website (“MSG Website”) found at www.msglookup.com/index.html.
This website contains a searchable database of Commercial Banks, Savings Institutions, Credit Unions, Trust Companies, Mutual Funds, Broker/Dealers, Government Agencies, Law Firms, Registered Investment Advisors, and other firms currently enrolled in the Securities Transfer Agents Medallion Program (“STAMP” or “the Program”). The contents of the MSG Website are provided as a public service and intended to be informational only.
To search for financial entities in your area that potentially offer these type of stamps, check out this link: http://www.msglookup.com/search.html.
***We highly recommend you reach out to these banks directly for more information and their availability regarding this type of service, as their individual requirements may differ.***