printable banner

U.S. Department of State - Great Seal

U.S. Department of State

Diplomacy in Action

15. U.S. Department of State telegram to all U.S. diplomatic and consular posts abroad concerning medallion stamp guarantees, May 21, 2001.


Share

FM SECSTATE WASHDC

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.

 

 

 

 

 

 

^

 



Back to Top
Sign-in

Do you already have an account on one of these sites? Click the logo to sign in and create your own customized State Department page. Want to learn more? Check out our FAQ!

OpenID is a service that allows you to sign in to many different websites using a single identity. Find out more about OpenID and how to get an OpenID-enabled account.