Medallion Signature Guarantee Program
New England Federal Credit Union participates in the Medallion Signature Guarantee Program for the sole purpose of guaranteeing the signatures of members on the transfer of securities.
With this stamp, NEFCU is verifying several different things at the time of signing: the signature is genuine, the signer is the appropriate person to endorse, and the signer has legal capacity to sign.
Our stamp can only be used to guarantee a transfer (sale, transfer of ownership, redemption, or liquidation) of securities (stock, bonds, or mutual fund assets). We cannot stamp documents that involve transactions on savings accounts, certificates of deposit, IRAs without securities, or any asset without securities.
In addition, the value of the transaction can be no more than $500,000; all owners must be present to sign, and have proper identification, and the member must provide us with all required documents.
Member must present us with the following documents:
- Letter of instruction that requires the signature guarantee.
- Stock certificate showing the owners of the asset if they are transferring stock.
- Current statement of account for assets where there is no certificate, such as mutual funds.
- All owners must be present to sign the letter of instruction in the presence of the guarantor.
- The letter of instruction must be filled out completely prior to the signature guarantee.
- Other documents that establish their ownership of the asset, such as trust papers, executor papers, power of attorney, marriage certificate or other documentation. If the letter of instruction is about a name change, proper identification for all owners such as driver’s license or passport are needed.
The sole proper use of the Medallion Imprint at NEFCU is in connection with those transactions involving a change in ownership or a liquidation of the following items:
- Mutual Funds
- Savings Bonds
(or any Governmental Debt Obligation)
- Unit Investment Trusts
- Other investment vehicles that meet the definition of a security
NEFCU doesn’t provide Medallion Guarantees for:
- Savings Account Withdrawals
- Bank Account Close-Outs
- Check Endorsements
- Home Equity Loan Applications
- Auto Loan Applications
- Certificates of Deposit
- Amendments to Partnership or Trust Agreements
- Changes to Life Insurance or Pension Trust Beneficiaries
- Electronic Funds Transfer Enrollment Forms
- Treasury Direct Administrative Account Updates
- IRAs that do not contain Securities
- Copies of Documents not involved in a Security Transaction
- Guaranteeing or certifying maintenance or administrative changes, such as address or TIN updates, account number changes and the like
- The dollar amount of a transaction greater than$500,000
New England Federal Credit Union has consented to adhere to all regulations regarding the Medallion Signature Guarantee Program. Should the stamp be used in an improper manner, NEFCU can lose the authorization to stamp documents and can be subject to legal action.