What is a Medallion Signature Guarantee?
A Medallion Signature Guarantee is a certification stamp that guarantees the authenticity of an authorized signature for transferring securities (e.g., stocks or bonds) in physical certificate form. The signature guarantee is required when a securities owner wishes to transfer securities or assign ownership over to another person or entity. The owner’s signature must be guaranteed on all documents before the transaction will be accepted.
A Medallion Signature Guarantee makes it more difficult for people to forge an owner’s signature and steal their securities. It also protects transfer agents by limiting their liability and losses. Institutions (like banks and credit unions) can only provide a Medallion Signature Guarantee if they belong to one of the following programs (Investor.gov):
- Stock Exchanges Medallion Program (SEMP)
- New York Stock Exchange Medallion Signature Program (MSP)
- Securities Transfer Agents Medallion Program (STAMP)
Get Your Medallion Signature Guarantee Bond:
- A Medallion Signature Guarantee is a certification stamp that guarantees the authenticity of an authorized signature for transferring securities.
- The stamp makes it difficult for people to forge signatures and steal securities.
- STAMP members must post a surety bond to guarantee signatures.
- Your STAMP surety bond must be equal to or greater in value than the largest security transaction your financial institution guarantees.
What is a STAMP surety bond?
STAMP members include credit unions, commercial banks, savings banks, and broker-dealers. Members must have Medallion imprinting equipment and post a surety bond to guarantee signatures. Specifically, the Securities Transfer Association (STA) endorses the STAMP program and requires these bonds. The STA is a specialized trade association that serves the transfer agent industry in the United States and Canada.
A Medallion Signature Guarantee or STAMP bond is a three-party agreement involving an obligee (the party requiring the bond), a principal (the party that purchases the bond), and a surety (the party that issues the bond).
- Obligee: The Securities Transfer Association requiring program guarantors to post a bond protecting transfer agents and other parties relying on the guarantee (that signatures are legitimate)
- Principal: The program guarantor (credit union, bank, etc.) that purchases and maintains the surety bond
- Surety: The financial institution that issues the bond to the principal and backs it financially
How do STAMP bonds work?
If you need a STAMP surety bond, it must be equal to or greater in value than the largest security transaction your financial institution guarantees. This bond requires a credit check. To obtain this bond, you will pay a percentage of the bond amount required. Typically, the better your credit score is, the lower your bond premium will be.
Contact us with any questions you have about your specific requirements or the application process. You can reach us at 888-435-4191 or firstname.lastname@example.org.
Get Your STAMP Surety Bond
ZipBonds offers the fastest and most secure option for getting the surety bonds you need. Our all-digital platform is intuitive and straightforward. Apply today online or call us at 888-435-4191 to speak with an agent directly.
Founders Ryan Swalve and Zach Mefferd formed the vision for ZipBonds.com when they realized how overly complicated it was to help clients place surety. The frustration of being unable to incorporate the technology they’d used in other insurance-focused projects left them thinking “there has to be a better way.”
Fast forward a couple of years, and that better way is the impetus of everything we do at ZipBonds. We constantly look for innovative ways to improve the bonding process for our clients and agents. Our team comprises individuals who understand all angles of surety – for companies, agencies, and individuals. Incorporating everyone’s point of view to improve the process while simultaneously integrating cutting-edge technology is what sets our business apart.