Is there any advantage or disadvantage in accepting a regular or Medallion Signature Guarantee in lieu of an Endorsement Guarantee?

Looks like you'll need to call the Dept. of Banking or TBA. IBAT would have been a good resource, but since your bank is no longer a member, you can forget that.

Section 8.312(a) of the Business Commerce Code provides that any person guaranteeing a signature of an endorser of a certified security warrants that the time of signing: (1) the signature was genuine; (2) the signer was an appropriate person to indorse; and (3) the signer had legal capacity to sign.

If your own bank guarantees the signature they don't get the benefit of the guaranty. If your bank is sure of the signature it is not an issue. You can guaranty the signature in order to allow for the sale of the security. The issue has to do with whether your bank has recourse against some other bank if the signature turns out to be a fake.

A Medallion imprint or stamp indicates that the financial institution is a member of a Medallion signature guarantee program and is an acceptable signature guarantor. By participating in the program, financial institutions can guarantee customer signatures with the assurance that their guarantees will be immediately accepted for processing by transfer agents.

Transfer agents can refuse to accept a signature guarantee from an institution that does not participate in the Medallion program or that is not recognized by the transfer agent.

The basis of the question stems from a commercial non-account holder wanting to negotiate an item drawn on us for a cashier's check exchange. We informed the customer that we required an endorsement guarantee before we would exchange the item. The customer returned with a Medallion Guarantee instead. The real question is are we indemnified against a loss by accepting the Medallion Guarantee or should we require the customer to return with an endorsement guarantee as requested?

Medallion Sigs are for transfer of stock/securities only and is not meant as an endorsement guarantee. My guess is that type of situation might even be prohibited in the Medallion Sig. Program documentation. I'd double check to be sure.

How can I find someone to offer this service if none of our banks do and it is required to dissolve a bond per a divorce decree?

Do you have any Investment Companies in your community - Ed Jones, etc - anyone that deals with stocks, IRA's, etc should have one.

Is there any listing on who dose the medallion stemp
I the USA and outside the usa (Web site or printed list

was your question answered until now? If yes, please provıde us information on mdb.atilla1@btinternet.com

thank you
Atilla