Medallion Signature Guarantee Law and Legal Definition
A Medallion Signature Guarantee is a special signature guarantee used in 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. They are offered through a financial firm like a broker, bank, or credit union that participates in one of the following Medallion Guarantee programs:
* STAMP - Securities Transfer Agents Medallion Program
* SEMP - Stock Exchange Medallion Program
* MSP - New York Stock Exchange, Inc. Medallion Signature Program
