What is a Medallion Signature
Guarantee?
Over 6,000 brokerage firms and
financial institutions belong to the
Medallion Signature Guarantee
Program. The application of a
Medallion Signature Guarantee
provides the authentication of the
guarantor that the endorser of a
certificate is the registered owner
and has the legal authority to sign
the certificate. The guarantor must
know the endorser and stand behind
its guarantee.
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What is Restricted Stock?
This generally refers to stock
purchased in a private placement
directly from an issuer before the
company is public. Restricted stock
also may have been acquired through
a corporate reorganization or
acquisition, in return for services,
or purchased from an original
shareholder.
Restricted stock frequently will
have a legend printed on the back of
the stock certificate(s) stating
that the shares cannot be sold or
transferred without either
registration under the Securities
Act of 1933 or an exemption from
such registration, such as meeting
the requirements of Rule 144.
However, the absence of a legend
does not mean that there are no
restrictions on the sale of the
shares. See also Removing a
Restricted Legend.
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What shareholder information is required to issue stock?
1. Name of Shareholder: Full name as on birth certificate, drivers license, or passport (No Initials).
2. Unique Goverment-Issued Identification Number: (Required for OFAC Compliance, Dividend Reporting (1099s), and Identity Protection.)
U.S. Shareholders: Social Security or Tax ID Number
Canadian Shareholders: Social Identification or Business Identification Number
Other Foreign Shareholders: Passport or other Government Issued ID Number
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3. Mailing Address
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Where do I send certificates for
transfer?
All transfers should be insured and
mailed to: Colonial Stock Transfer
Company at 66 East Exchange Place,
Salt Lake City, UT 84111. Important Note: Whenever
you mail certificates, it is
advisable to insure the certificates
for 3% of their current market
value. This is the approximate
amount charged by most surety
companies to obtain the surety bond.
This bond is required to replace the
certificate should it be lost in
transit.
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How do I transfer shares to another
person?
Example: From John A. Doe to Mary Q.
Smith. Complete the assignment
designating the new owner on the
back of the certificate. Have all
registered stockholders endorse the
certificate and obtain a Medallion
Signature Guarantee for the
endorsements.
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How do I transfer shares from a
custodian to a minor who is now of
age?
Example: From John A. Doe, Custodian
for Jane A. Doe, UGMA VA to Jane A.
Doe. Have the custodian endorse the
certificate and complete the Stock
Power assigning the shares to the
former minor. Obtain a Medallion
Signature Guarantee for the
endorsement and include a certified
copy of the minor’s birth
certificate.
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How do I transfer shares from a
deceased individual?
Example: From John A. Doe to Mary J.
Doe. The executors or administrators
of the estate must complete the
Stock Power, assigning the stock to
the beneficiary and endorsing the
stock. All signatures must be
guaranteed with a Medallion
Signature Guarantee. Along with the
Stock Power, the following items are
required: a notarized, completed
Affidavit of Domicile and a
certified copy of the appointment of
the executor, administrator, etc.,
dated within 60 days. Note: If the
estate has not been probated, a
small estate affidavit is required.
Some states require an inheritance
tax waiver (release). Waivers are
usually required if the company is
incorporated and the beneficiary
resides in one of the following
states: Alabama, Indiana, Kansas,
Kentucky, Louisiana, Montana, New
Jersey, New York (If the security
exceeds $30,000), North Carolina,
Ohio, Oklahoma, South Carolina and
Tennessee. Beneficiaries should
contact Colonial Stock Transfer Co.
to determine if a waiver is
required.
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How do I transfer shares from a
deceased joint tenant?
Example: From John A. Doe and Mary
J. Doe, JT TEN to Mary J. Doe. The
surviving tenant(s) must complete
and endorse the Stock Power. All
signatures must have a Medallion
Signature Guarantee. In addition to
the Stock Power, the following
documents are required: A notarized
and completed Affidavit of Domicile
of the decedent and a copy of the
Death Certificate. Some states
require an inheritance tax waiver
(release). Waivers are usually
required if the company is
incorporated and the beneficiary
resides in one of the following
states: Alabama, Indiana, Kansas,
Kentucky, Louisiana, Montana, New
Jersey, New York (If the security
exceeds $30,000), North Carolina,
Ohio, Oklahoma, South Carolina,
South Dakota and Tennessee.
Beneficiaries should contact
Colonial Stock Transfer Company to
determine if a waiver is required.
