What is a Medallion Guarantee? Written By Sandra McCarthy Founder, A People’s Choice Fact Checked A medallion guarantee, also referred to as a medallion signature guarantee, is used when buying or selling physical stock and bond certificates. A medallion guarantee is used to prove that the stock or bond owner has the right to sign over his/her rights to the assets being sold. A medallion guarantee may also be used to change ownership of an investment account such as when transferring stocks or government bonds into a trust.The medallion signature protects the following: An existing shareholder’s interest in the physical security instrument by reducing the likelihood of the asset being stolen; The transfer agent’s liability because a medallion is used to guarantee the signature of the owner; and The purchaser of shares because it provides a guarantee that the purchase is legitimate. In short, the medallion guarantee is the issuing financial institution’s certification that a signature regarding the sale or transfer of a security instrument is authentic. Sometimes this may be required when transferring securities into a living trust. “I always received a prompt reply to my inquiries and found the legal guide they gave me extremely helpful. If you know what you want to do, don’t need legal advice and just need help preparing legal paperwork, I highly recommend this company.” K. Read“A People’s Choice is a great option to get legal documents prepared inexpensively. They offer a very professional, low cost service for all sorts of legal paperwork, from living trusts, to divorce, probate and everything in between.” K. ReadNeed a Legal Document Prepared? GET STARTED!or call 1-800-747-2780 A medallion guarantee is commonly confused with functions performed by a notary. The medallion signature guarantee is different than a notarized signature. A notary public receives a license from the state to perform his/her duties. A financial institution can appoint a notary to perform medallion guarantees on its behalf. A notary can issue a medallion guarantee if he/she is a certified participant in a financial institution’s medallion signature. A financial institution may charge a small fee for issuing a medallion guarantee. How to Get a Medallion Guarantee You can get a medallion signature guarantee from a local bank or brokerage firm (most financial institutions restrict the medallion guarantee to existing customers). Medallion guarantees can only be authorized by one of three medallion signature guarantee programs: Securities Transfer Agents Medallion Program Stock Exchange Medallion Program New York Stock Exchange Medallion Signature Program A financial institution must belong to one of the above three groups to issue a medallion signature guarantee. If the financial institution is not a member of a medallion guarantee program, it is unauthorized to provide a signature guarantee. Institutions that participate in the program guarantee customer signatures with the assurance that their guarantee will be immediately accepted for processing. Contact A People’s Choice for help with all your legal document needs. A People’s Choice has provided low-cost, non-attorney legal document preparation for over 35 years in California. Call us at 800-747-2780. Get help with your Legal documents today! A People’s Choice can save you hundreds of dollars by preparing your legal documents instead of an expensive attorney! GET STARTED!Was this article helpful? We would love to know your thoughts! If you found this article helpful, please check the LIKE button below. Your feedback helps us plan topics for future articles. By Sandra McCarthy|2022-01-22T19:58:19-08:00January 15th, 2017|Estate Planning|Comments Off on What is a Medallion Guarantee?