Posted by Linda_in_MI on 12/29/05 7:55pm
Msg #85150

Guaranteed Signature - can a notary offer this service?

OK, did the search on the board, found some answers but still have questions.

At a signing today, the borrower (who sells insurance and other finanicial planning) off the cuff asked if I could provide the service of guaranteed signatures. Rather than plead total ignorance, especially if this was potentially an aspect of notarial service I didn't know about but could offer to other insurance offices, I responded: 1- I had never been asked about that service before; 2-I would check into it and 3-I would get back with him.

The borrower mentioned that it has to do with brokerage/stock accounts. I found that it involves some type of confirmation of the identify of the signer/signature when selling stock. But that's where it starts to get confusing. Can anyone help, or point me in a direction where I can get help? Thanks.

Reply by Rebecca Jones on 12/29/05 8:12pm
Msg #85155

A Signature Guarantee is definately different from a notary & no a notary cannot do Signature Guarantee. A Signature Guarantee is offered by financial institutions. It is done 99% of the time for stock and bond trades & transfers of ownership and a notary is not acceptable for these types of transfers. I am also a branch manager at a bank during the day and only I am allowed to do the signature & stamp of a guarantee. It is through the Securities & Trade Commission & is financially backed by the bank. In my situation, the customer MUST be a customer for at least 6 months before I can perform the guarantee on the signature.

I hope this helps a little.

Reply by Linda_in_MI on 12/29/05 8:27pm
Msg #85162

Rebecca, THANK YOU !!! for your answer. I guess my response to the borrower from earlier today will have to be a no-can-do.
Linda

Reply by Tina_MA on 12/29/05 10:54pm
Msg #85208

I have notarized quite a few stock transfer documents for elderly folks. But I've never heard of a notary performing a guaranteed signature.

The transfer essentially states that the jointly held stock needs to be reissued as a singly owned stock due to a spouse's demise.

Reply by BetsyMI on 12/30/05 8:20am
Msg #85253

I worked for a financial planner a few years ago and he had the authority to do Guaranteed Signature and he told me at that time that I, as a notary, was not authorized to perform same. Don't know how he got his authorization/certification though. That was the first time I had ever heard of it.

Reply by Rebecca Jones on 12/30/05 5:56pm
Msg #85343

I believe you have to apply through the Securities & Trade Commission.

Reply by PAW_Fl on 12/30/05 9:10pm
Msg #85368

It takes a whole lot more. First, it must be understood that the "institution", not an individual, offers the service. And in order to be an eligible guarantor institution that is a participant in a signature guarantee program, the application must be approved by the Securities Exchange Commission (SEC), STA, and STC. This program includes: STAMP (Securities Transfer Agents Medallion Program}; SEMP (Stock Exchanges Medallion Program); or MSP (New York Stock Exchange Medallion Signature Program). When all that is said and done, and all the proper equipment is in place, then the institution will allow certain staff employees to use the stamp on behalf of the institution. (It is recommended that only a limited number of people have access to the stamp and safeguards and audits should be in place to ensure the proper use of the stamp.)