What is the difference between a Medallion Guarantee and a Notary Public?
Notary service is used to guarantee the validity of a signature only. A Notary Public is a public officer who witnesses and certifies the authenticity of signatures on deeds and other written instruments. They also may administer oaths and affirmations when needed and make certified copies of certain unrecorded original documents The Notary Public serves as an impartial witness to a transaction on legal documents, e.g. deeds, affidavits, etc. . Notaries are available at all branch locations at no charge to our members, shared branch members and non-members. Please note that we are unable to notarize I-9 forms.
A Medallion Guarantee is used only in situations involving the sale or transfer of securities. A Medallion Guarantor bears financial liability should the signature prove to be fraudulent. The Medallion Signature Guarantee Service is available at all branch locations. Some documents require further research and may require 3-5 business days to review. Copies will be submitted and you will retain your original documentation. Click on Medallion Stamp Member Checklist to access a form that will assist you with the preparation of documents requiring a Medallion Signature Guarantee.
Note: The Signature Validation Program, SVP, is a different program and is not available through the Delta Community. For more information about the SVP, go to http://www.svprogram.com/.
Is Delta Community a member of the Medallion Program with the Security Exchange Commission?
Yes, Delta Community participates with the Securities Transfer Agents Medallion Program (STAMP) when assisting you with Medallion Signature Guarantee requests. The STAMP program is one of three programs accepted by the SEC. At this time, this service is not available for business entities.
What does it mean when a transaction receives a Medallion Guarantee?
Each time a Medallion is used, the Guarantor is making the warranties of Section 8-306 of the Uniform Commercial Code (UCC). The UCC defines a guarantee of a signature as a warranty, with respect to the signature of the endorser of a security or an or an originator of an instruction regarding a security, that, at the time of signing, (a) the signature was genuine; (b) the signer was an appropriate person to sign, or if the signature was by an agent, the agent had actual authority to act on behalf of the appropriate person; and (c) the signer had the legal capacity to sign. Section 8-306 also states that the guarantor does not otherwise warrant the rightfulness of the transfer.
What is a Security?
Securities are shares, participations, or other interests in the property of an enterprise of an Issuer. You may have heard them referred to as stocks, bonds or funds. A Security is represented by an instrument which is in ‘Book entry’ or certificated form and is issued in the name(s) of a person(s) entitled to the Security or to certain rights represented by the Security. The instrument must be commonly traded on securities exchanges or in securities markets, or commonly recognized as a medium for investment where it is issued or traded.
On what documents can the Medallion Guarantee be used?
The Medallion Guarantee should be used only to guarantee an endorsement that authorities the sale, transfer, or redemption of a security of up to $500,000. Examples include: Mutual Fund Liquidation request, transfer or sale of shares of stock and U.S. Savings Bond redemption. At this time, this service is not available for business entities.
What documents should not be guaranteed?
Medallions are not intended for use in guaranteeing or certifying routine administrative changes such as address or TIN updates, account number changes and the like. Examples include: 401(k) Enrollment forms, Term Life insurance policies, Tax returns, Mortgage, or Car Loan documents. Of note, Medallions should not be used when transferring funds from one insurance product to another insurance product. For example, a 1035 exchange from a fixed annuity to a fixed indexed annuity would not need to be Medallion Guaranteed.
Proper Uses of the Medallion Stamp
The Medallion Stamp can be used to guarantee an endorsement on transactions up to $500,000 involving a change in ownership or a liquidation of the following items:
- Mutual Funds
- Savings Bonds (or any Governmental Debt Obligation)
- Unit Investment Trusts
- Other investment vehicles that meet the definition of a security
Note: A request to change the name shown on a security is considered a change in ownership and is a proper use of the Medallion Stamp.
Improper uses of the Medallion Stamp
The Medallion Stamp should not be used on transactions that do not involve the sale, transfer, redemption, or liquidation of securities, such as:
- Requests from business entities (corporations, LLCs, partnerships, etc.)
- Savings Account Withdrawals
- Bank Account Close-outs
- Check Endorsements
- Home Equity Loan Applications
- Auto Loan Applications
- Certificates of Deposit
- Amendments to Partnership or Trust Agreements
- Changes to Life Insurance or Pension Trust Beneficiaries
- Electronic Funds Transfer Enrollment Forms
- Treasury Direct Administrative Account Updates
- Copies of Documents not involved in a Security Transaction
- IRAs that do not contain Securities
- Guaranteeing or certifying maintenance or administrative changes, such as address or TIN updates, account number changes and the like
- Forms with whiteout on original forms will not be accepted