For many people, if they think of a Medallion Guarantee Stamp, they might well assume that it is the same as a notary stamp, but the truth is that these two items are entirely different.
Putting it simply, a Medallion Guarantee – also known as a signature guarantee – is for the transfer of securities and financial documents the institution supplying the Medallion stamp is financially responsible for the transaction and would be liable to pay any financial loss in the result of a fraudulent transaction whereas a notary stamp is used for legal documents often to verify the validity of the document itself.
So What Is A Notary Public?
A notary public is someone who acts as an impartial witness regarding the signing of certain legal documents in order to prevent fraud. They will be legal representatives such as solicitors, and cannot be a layperson. The notary public will need to ensure that the person signing the document is who they say they are, and they must be sure that no one is signing anything under duress. They also need to check that you understand what you are signing.
If a legal document is signed in the presence of a notary public, and stamped as such, then the document should be regarded as genuine, and any disputes will generally not be able to go through. A notary public may be required when buying a property, transferring car ownership, setting up a power of attorney, or authorising a parent or guardian to travel abroad with a minor.
What Is A Medallion Guarantee Stamp?
A medallion guarantee is much more specific than a notary stamp. It is linked to transferring securities such as stocks and shares, and by having the stamp on a document, it proves to financial institutions that the transfer is genuine. It is in the interests of the financial institution to insist on a medallion guarantee; it states that the institution will be liable for any loss if the document is a forgery.
This kind of stamp will protect shareholders because it ensures no non-authorised transfers take place. Plus the transfer agent’s liability is vastly reduced should there be a problem as long as there is a medallion guarantee in place.