DEFINITION of 'Signature Guarantee'

A form of authentication issued by a bank or other financial institution that verifies the legitimacy of a signature and the signatory's overall request. This type of guarantee is often used in situations where financial instruments are being transferred. In most cases, the guarantor accepts all consequences in the event that the signature is fraudulent.

BREAKING DOWN 'Signature Guarantee'

With the number of crimes related to identity theft rising each year, using a signature guarantee service is a great way to prevent others from capitalizing on your identity in order to commit fraudulent acts.

In order to provide some sort of signature guarantee, a financial institution must be a member of a recognized securities guarantee program, such as Medallion.

RELATED TERMS
  1. Medallion Signature Guarantee

    One of several special certification stamps which guarantee that ...
  2. Securities Transfer Association ...

    A verification system used by many different institutions to ...
  3. Signature Loan

    A type of personal loan offered by banks and other finance companies ...
  4. Two Name Paper

    A nickname assigned to trade paper. Both Trade Acceptances and ...
  5. X-Mark Signature

    An X-mark made by a person in lieu of a signature. Due to illiteracy ...
  6. Guarantee Company

    A form of corporation designed to protect members from liability, ...
Related Articles
  1. Insights

    Signature Bank Expands Client Banking Teams (SBNY)

    New York-based Signature Bank enhanced its private client banking network with the addition of three veteran bankers.
  2. Personal Finance

    Visa Signature vs. MasterCard World Elite: How They Differ

    Learn about the key similarities and differences between the Visa Signature and MasterCard World Elite lines of credit cards and the benefits they offer.
  3. Retirement

    The Cost Of Variable Annuity Guarantees

    These products tempt investors with some impressive benefits - but they come at a price.
  4. Insights

    Pros And Cons Of Credit Monitoring Services

    Identity theft is a complex problem. Learn if credit monitoring services are the solution.
  5. Managing Wealth

    Morgan Stanley's New Identity Theft Protection (MS)

    Morgan Stanley now offers identity theft protection to high net worth clients, pursuant to a poll in which they cited this as a top fear.
  6. Insights

    5 Overlooked Places Where Your Identity Can Be Stolen

    Identity theft affects many Americans, and are often caught off guard. These are 5 places thieves target.
  7. Managing Wealth

    How to Recover From Identity Theft

    Identity theft isn't going away, and fixing it can take time and money. But doing nothing isn't an option. Rather than become a victim, it is time to take action.
  8. Insights

    Are You A Target For Identity Thieves?

    The Americans at highest risk for identity theft and identity fraud aren't the ones you most expect. See if you're on the high-risk list.
  9. Financial Advisor

    Who Should Buy a Guaranteed Issue Life Insurance Policy?

    Guaranteed issue life insurance policies have added costs and reduced benefits that make them suitable for only a limited pool of buyers.
  10. Insights

    Identity Theft: Who To Call For Help

    If your identity is stolen, it's critical to act fast. Find out what to do if it happens.
RELATED FAQS
  1. How does a company obtain a bank guarantee?

    Find out how bank guarantees work, why they are issued and the process that a business normally goes through to acquire one ... Read Answer >>
  2. How is a bank guarantee different from a traditional loan?

    Read about the differences between a traditional bank loan and a bank guarantee, and why a third party might require a guarantee ... Read Answer >>
Trading Center