Medallion Signature Guarantee: What is it?

---

Posted on Wednesday, August 14, 2024 in Financial Management & Trust Services

Customers often ask why they are required to obtain a Medallion Signature Guarantee on financial documents and why a notary is not sufficient. A notary validates identity and provides a witness to a signature, but a Medallion Signature Guarantee provides an additional level of security.

The Medallion Signature Guarantee authenticates the identity of an individual when they transact securities.  In addition, the guarantor certifies that the signer is the appropriate person to sign with proper legal authority, and the signer has legal capacity. 

A Medallion Signature Guarantee is normally used to authenticate the transfer or sale of securities. A security is an instrument commonly traded on securities exchanges or in securities markets. The most well-known examples of securities include stocks, bonds, mutual funds, and US government debt obligations. Common situations that require a medallion guarantee are when securities are gifted, ownership is transferred due to a death, or when assets are moved to a new custodian.  The program is intended to make it difficult for people to commit fraud by forging your signature on certificates and related documents. 

Medallion Signature Guarantees are not widely available because the guarantor is exposed to risk and liability.  For this reason, First National Bank as guarantor only provides this service to customers with an established deposit or loan relationship.  Documents must be signed in person. The following information is verified before a signature guarantee is completed: 

•  Identity with photo documentation
• Ownership rights and legal authority
• Security transaction value with most current investment statement or actual certificate you wish to transfer or sell

To request a Medallion Signature Guarantee, please call 515-663-3037 to schedule an appointment at the downtown Ames branch. Appointments are available outside of Ames by contacting the branch manager at your nearest First National Bank location.

There is a fee for a Medallion Signature Guarantee.