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In the United States and Canada, 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.
obviously a great degree of care must be taken when a request for a signature guarantee is received in addition the utmost care must be taken in safeguarding the bank s medallion stamps and limiting their use to authorized bank officers the branch manager assistant branch manager or where the location does not have an officer the customer service manager the following