What is a Medallion Signature Guarantee/Signature Guarantee?
In general terms a signature guarantee is the process whereby the guarantor warrants to the transfer agent that: a) the signature of the shareholder is genuine, b) the signer was an appropriate person to endorse the certificate, and c) the signer has the legal capacity to sign. The Medallion Signature Guarantee is the term used to describe the programs that are in place in the United States and in Canada. Companies can apply for, pay an insurance premium and if approved, receive a special stamp to enable them to provide signature guarantees within the limits of the insurance they have paid for. The limits are set to the market value of any one certificate the medallion stamp appears on. In Canada, in addition to the Medallion programs, banks may also provide signature guarantees.
