Community Bank's Notary and Medallion Signature Guarantee Services
What is a Notary Public?
Community Bank sponsors several employees to act as Notaries for Bank customers only. A Notary Public is appointed by the Secretary of State for a four year term. The purpose of a notarization is to prevent fraud and forgery. The Notary acts as an official and unbiased witness to the identity of the person who comes before the Notary and signs a document in the presence of the Notary. Our Notaries are bonded and bound to uphold the notary rules of the State of Illinois. We cannot notarize a document originating from another state as rules vary from state to state. Community Bank maintains a Notary log that is completed for each notarization performed.
Please note that due to recent changes to the Notarial Record Law, Community Bank does not notarize any Documents of Conveyance (warranty deeds and quit claim deeds) at any time. These documents are generally notarized and processed with a Title Company.
When coming to the Bank to obtain a Notary stamp on a document, please ensure that you have a valid photo ID (Driver’s License, State ID or Passport) and DO NOT sign the document prior to coming to the Bank. You will be required to sign the document in the presence of the Notary. We will only notarize a document that has a space requiring a notary stamp.
Under State rules, we will not notarize any document used to verify citizenship for employment.
MEDALLION SIGNATURE GUARANTEE
What is a Medallion Signature Guarantee?
This is a special stamp that has been issued to Community Bank as a participant in the Securities Transfer Agents Medallion Program (STAMP). The stamp is used only by trained Bank staff and is required any time a sale or change of ownership of securities occurs. This special guarantee protects the securities owners and Transfer Agents against securities being transferred fraudulently. This service is unlike traditional Notary Public services, in that Community Bank has obtained a special surety bond and executed an indemnity agreement to participate in this program. Community Bank’s use of the stamp creates liability to the Bank resulting from a loss from fraudulent or unauthorized endorsements or transactions.
When using the Stamp, what is the Bank Guaranteeing?
When the Bank uses the Medallion Signature Stamp they are making warranties with respect to the signature of the endorser of a security or an originator of an instruction regarding a security. Specifically, the warranty is that, at the time of signing, the signature was genuine; the signer was the appropriate person to sign or if the signature was by an agent, the agent had authority to act on behalf of the appropriate person, and finally that the signer has the legal capacity to sign.
What types of documents require a Medallion Guarantee Stamp?
The Medallion Stamp is to be used only to guarantee a signature that authorizes the sale, assignment, transfer or redemption of a security. Examples include but are not limited to the following: mutual fund liquidation request, transfer or sale of shares of stock, U.S. Savings Bond redemptions and any security registration change (a name change, or change in initials is considered a change in ownership).
What types of documents cannot be signature guaranteed?
Medallion Stamps are not intended to be used in guaranteeing routine administrative changes such as, address or TIN updates, account number changes, etc. Examples include but are not limited to 401 K enrollment forms, term life Insurance policies, tax returns, mortgage or loan documents.
What is Community Bank OPRF’s dollar limit in using the Medallion Stamp?
Community Bank’s dollar limit for guaranteeing a transaction is limited to $100,000. The limit is set in accordance with the asset size of the Bank. If a transaction is guaranteed with a dollar value over $100,000, the Transfer Agent would reject the transaction.
Can Community Bank refuse to provide me with a Medallion Guarantee?
Yes, Community Bank will not provide a Medallion Signature Guarantee if all required documents are not presented/available, the value of the transaction exceeds the $100,000 surety bond limit or there is a question about the validity of the transaction. We will not under any circumstances perform the service for someone who is not present, not a customer, or is deceased.
If Community Bank cannot provide me with a Medallion Signature Guarantee, what are my other options?
If the dollar limit of your transaction exceeds $100,000, you may seek to obtain a Medallion Guarantee from another bank that has a larger transaction limit with whom you have a banking relationship, or with your broker. If that is not possible, we suggest that you contact the transfer agent and ask their recommendation for obtaining the Medallion.
If I need a Medallion Signature Guarantee from Community Bank, what documentation should I bring?
You should bring the following: the form from the Transfer Agent that requires the Medallion Guarantee, valid identification, documentation showing your authority to execute the request such as a current account statement showing your name and account number as owner, and verification of the dollar amount of the transaction.
Do I need to make an appointment for a Medallion Guarantee?
We recommend that you call the Bank prior to coming in for this service. You will want to make sure one of our trained representatives is available to help you with the service. You will also want to make sure you have all the proper documentation that the Bank requires to provide the Signature Guarantee.