<P> In the United States, 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 . Not all MSG stamps are of equal value . A special coded prefix is given to each stamp, and this prefix determines how much monetary value can be guaranteed . For instance if the MSG is required for $400,000 worth of value, at least a C prefix is required, which is good for up to $500,000 value . If a D prefix stamp is submitted, the transaction will be rejected, because a D stamp is only good for guarantee up to $250,000 . Often ComputerShare paperwork only informs of a need for a MSG, but does not specify anything about the necessity of certain prefixes . </P> <P> A medallion signature guarantee is a binding warranty, issued by an agent of the authorized guarantor institution, that: (a) the signature was genuine; (b) the signer was an appropriate person to endorse, and (c) the signer had legal capacity to sign . A medallion signature guarantee is not equivalent to an American Notarial act . One American Notarial act, called an acknowledgment, is a formal declaration made before an authorized public officer (i.e. Notary Public, Judge or Justice). It is made by a person executing an instrument who states it was his "free act and deed". The three essential components of an acknowledgment are: (a) the personal appearance before an authorized public officer; (b) positive identification; (c) the actual acknowledgment of signing . Unlike medallion signature guarantees, the person executing many legal documents does not have to sign his name in the physical presence of the issuing officer (i.e. Notary Public, Judge or Justice). </P>

When do you need a medallion signature guarantee