When conducting financial transactions, it is common to need to know the difference between a notary public and a signature guarantee. There are two chief differentiators between the two. There are different credentials necessary for the two verifications and the guarantee itself varies.
Each transaction requires a different person.
The personnel who are authorized to conduct signature guarantees may also be designated as notaries public. However, most notaries are not also authorized to issue a signature guarantee. This usually makes it harder to find an agent authorized to issue a signature guarantee. You can find a notary public at most banks, government offices, and universities. To find an agent for a signature guarantee, look at banks and brokerage houses. That is where they are usually found, since the main purpose of a signature guarantee is to transfer securities. In order to be authorized to conduct a signature guarantee, the agent must participate in a medallion signature guarantee program in accordance with rules set by the Securities and Exchange Commission.
Each issues a different guarantee.
In a transaction with a notary public, the notary reviews the identification of the signor. The notary then affirms that the signor's identification matches that on the document and that the signature was made without any duress or coercion. Since there is little liability to the notary, most notaries public are willing to notarize documents for new clients, and they may even charge a small fee for this service. On the other hand, you usually need to be a current customer to get a signature guarantee. This is because there is substantial liability associated with a medallion signature guarantee, so most banks and brokerage houses are only willing to issue a guarantee for their own customers.
With a signature guarantee, the agent (who may also be a notary public) verifies the identity of the signor and also guarantees that the signature is valid. With a signature guarantee, the issuing institution accepts the liability in the event that the signature is a forgery. With a notarization, no such liability is assumed.
It is important to understand the signature verification needs of your document. If only a notarization is necessary, it should be a fairly simple process. If a medallion signature guarantee stamp is needed, then go to banks and brokerage houses where you currently have a business relationship.
Each transaction requires a different person.
The personnel who are authorized to conduct signature guarantees may also be designated as notaries public. However, most notaries are not also authorized to issue a signature guarantee. This usually makes it harder to find an agent authorized to issue a signature guarantee. You can find a notary public at most banks, government offices, and universities. To find an agent for a signature guarantee, look at banks and brokerage houses. That is where they are usually found, since the main purpose of a signature guarantee is to transfer securities. In order to be authorized to conduct a signature guarantee, the agent must participate in a medallion signature guarantee program in accordance with rules set by the Securities and Exchange Commission.
Each issues a different guarantee.
In a transaction with a notary public, the notary reviews the identification of the signor. The notary then affirms that the signor's identification matches that on the document and that the signature was made without any duress or coercion. Since there is little liability to the notary, most notaries public are willing to notarize documents for new clients, and they may even charge a small fee for this service. On the other hand, you usually need to be a current customer to get a signature guarantee. This is because there is substantial liability associated with a medallion signature guarantee, so most banks and brokerage houses are only willing to issue a guarantee for their own customers.
With a signature guarantee, the agent (who may also be a notary public) verifies the identity of the signor and also guarantees that the signature is valid. With a signature guarantee, the issuing institution accepts the liability in the event that the signature is a forgery. With a notarization, no such liability is assumed.
It is important to understand the signature verification needs of your document. If only a notarization is necessary, it should be a fairly simple process. If a medallion signature guarantee stamp is needed, then go to banks and brokerage houses where you currently have a business relationship.
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Want to know more about signature guarantees versus notary public? Check out the bank signature guarantee blog to learn more.
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