Erasure Guarantee


DEFINITION of 'Erasure Guarantee'

A guarantee made by accredited institutions assuring the legitimacy and accuracy of changes made to bonds and securities. Erasure guarantees are used often in transferring securities. When an owner presents physical notes or share certificates as proof of ownership, special care is taken to ensure these documents are free of any corrections or erasures, particularly when significant sums of money are involved.

BREAKING DOWN 'Erasure Guarantee'

Banks and transfer agents for these securities may require an erasure guarantee, if there are any erasures or corrections on the document, to protect themselves against future claims if in the future it is determined that fraud has occurred. An erasure guarantee is similar to a document being witnessed by a notary public and typically takes the form of a medallion signature guarantee affixed to the erasure.

  1. Bond

    A debt investment in which an investor loans money to an entity ...
  2. Signature Guarantee

    A form of authentication issued by a bank or other financial ...
  3. Stock

    A type of security that signifies ownership in a corporation ...
  4. Medallion Signature Guarantee

    One of several special certification stamps which guarantee that ...

    A unit of ownership interest in a corporation or financial asset. ...
  6. U.S. Savings Bonds

    A U.S. government savings bond that offers a fixed rate of interest ...
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