To obtain Medallion signature guarantee, become a client of a financial institution that subscribes to one of the Medallion signature guarantee programs, and then request for the guarantee from the institution, according to Investopedia. The institution may charge a fee for providing the Medallion signature guarantee.
A Medallion signature guarantee refers to a special certification stamp that acts as an assurance that the signature used to authorize the security transfer is valid, as explained by Investopedia. In most cases, this signature guarantee becomes a necessity when a person intends to transfer or sell his securities to another person. Such securities may be bonds or stocks whose ownership is held in a tangible certificate form. By contrast, the transfer of securities held through a broker do not call for a Medallion signature guarantee for their transfer to be effected.
There are three Medallion signature guarantee programs that guarantee the authenticity of a signature: the Stoke Exchanges Medallion Program, the Securities Transfer Agents Medallion program and the New York Stock Exchange Medallion Signature Program, as reported by Investopedia. If a financial organization becomes a member to any of the three programs, such an organization qualifies to offer a Medallion signature guarantee to its respective clients.
Large or small, local or national, many banks offer Medallion signature guarantee. More than 7,000 banking and financial institutions participate in the Medallion program. When a Medallion signature guarantee is required, a guarantee of signature will not be accepted from institutions that do not participate in the Medallion program.
Outside the United States, a U.S, embassy can provide a signature guarantee in the form of a consular seal. Military personnel stationed outside the U.S. may attest to the authenticity of their signature by appearing before an authorized adjutant or legal officer.
To obtain a Medallion signature guarantee, the amount of the transaction must not exceed the amount of the surety covered by the Medallion.