TO ALL DIPLOMATIC AND CONSULAR POSTS
SPECIAL EMBASSY PROGRAM
ZEN/PRISTINA POUCH
ZEN/FREETOWN POUCH
ZEN/BELGRADE POUCH
ZEN/DUSHANBE POUCH
BT
UNCLAS STATE 094617
* * * *
1. Summary: CA/OCS is aware that posts often
are asked to perform a service known as a "medallion
signature guarantee" or a "medallion stamp guarantee."
This message repeats and elaborates upon previous
instructions on this subject, in view of increasing
requests to perform this procedure. U.S. Consular, Foreign
Service and notarial officers are not/not authorized to
provide a signature guarantee/medallion guarantee service.
Only a financial institution participating in a U.S.
Securities and Exchange Commission (SEC) medallion
signature program is authorized to affix a medallion
imprint. End summary.
2. WHAT IS A MEDALLION SIGNATURE GUARANTEE?
A medallion signature guarantee is not/not a notarial
service. It should not be confused with a corporate
acknowledgement (7 FAM 834) executed by a corporate officer
before a notary public or U.S. State Department notarizing
official authorized to administer oaths. A medallion
signature guarantee is a special signature guarantee for
the transfer of securities. It is a guarantee by the
transferring financial institution that the signature is
genuine and the financial institution accepts liability For
any forgery. Signature guarantees protect shareholders by
preventing unauthorized transfers and possible investor
losses. They also limit the liability of the transfer
agent who accepts the certificates.
3. WHO CAN EXECUTE A MEDALLION SIGNATURE GUARANTEE?
When selling or transferring securities, the signatures of
investors on stock certificates must be "guaranteed" by a
financial institution participating in a medallion program
approved by the U.S. Securities and Exchange Commission
(SEC). An eligible guarantor institution (bank, stock
broker, savings and loan association or credit uniion) must
have a membership in an approved signature guarantee
medallion under SEC Rule 17ad-15. Entities with membership
in an approved signature guarantee medallion program must
arrange a surety bond and apply for, and receive,
acceptance as a program guarantor. The guarantor
institution must then obtain the necessary equipment
required to perform the medallion signature guarantee
function.
4. ARE CONSULAR/NOTARIZING OFFICERS AUTHORIZED TO PERFORM
MEDALLION SIGNATURE GUARANTEES?
U.S. Consular/Notarizing officers are not/not authorized to
provide signature guarantee/medallion guarantee service.
Only a financial institution participating in an SEC
medallion signature guarantee program is authorized to
affix a medallion imprint. No other/no other form of
signature verification can be accepted to transfer
securities.
5. CONCLUSION
Persons who request posts to perform signature
guarantee/medallion guarantee services may be referred to
local branches of U.S. banks, brokers or attorney.
Alternatively, they may contact the SEC directly via the
internet at http://www.sec.gov/, via phone at 1-800-SEC-
0330 (investor assistance and complaints), via fax at 202-
942-7040, or by mail at Mail Stop 11-2, 450 Fifth Street
N.W., Washington, D.C., 20549.
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