Notaries working in banks or financial institutions may be asked to provide customers with a "Medallion Signature Guarantee." It's important to understand that this request is not a notarial act, but a special type of signature guarantee provided within the banking industry. To help you know what a Medallion Signature Guarantee is, let's look at what it does and why it's used.

What Does it Do?

A Medallion Signature Guarantee is used primarily when a customer transfers or sells securities. It represents an assurance by the financial institution that the signature on the transaction is genuine. The financial institution accepts liability for any forgery. This prevents fraud and protects both parties involved in the transaction.

Who Provides It? 

Specially assigned bank employees are responsible for providing Medallion Signature Guarantees, and they take that responsibility seriously with training and authorization. If a financial institution is not a member of a recognized Medallion Signature Guarantee Program, it would not be able to provide signature guarantees. Also, if a signer is not a customer of a participating financial institution, the financial institution will likely not guarantee the signature.

What Should I Do If Asked? 

If you are asked to provide any "Medallion" related services by a customer, explain that Medallion Signature Guarantees is not a notarial act and can only be performed by specially authorized bank personnel.

Understanding what a Medallion Signature Guarantee is is essential to being an informed Notary Public. Although this type of guarantee is commonly requested of Notaries, they are only able to provide notarial services such as oaths/affirmations and jurats. So if you ever get asked to perform one, make sure you politely explain that it is beyond your scope as a Notary Public! With this information, even novice Notaries will be prepared if they ever receive such customer requests.

Would you like more information about Medallion Signature Guarantees? The Securities and Exchange Commission offers comprehensive insights into this topic. Anyone needing a signature guarantor should be directed to a commercial bank, savings bank, credit union, or broker-dealer participating in one of the Medallion Signature Guarantee programs.