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Bank Medallion Guarantee for Canada

Bank Medallion Guarantee Template for Canada

A Bank Medallion Guarantee is a specialized verification document used in Canadian financial markets to authenticate signatures and guarantee the legitimacy of securities transfers. This document serves as a critical fraud prevention tool in securities transactions, providing a guarantee from a financial institution that a signature is genuine and the transaction is authorized. The guarantee is backed by the guaranteeing institution, which accepts liability for any losses resulting from forged or unauthorized signatures. In the Canadian jurisdiction, this document follows specific regulatory requirements under the Bank Act and Securities Transfer Act, offering protection to all parties involved in securities transfers.

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What is a Bank Medallion Guarantee?

The Bank Medallion Guarantee is a crucial document in Canadian securities transactions, designed to protect against unauthorized transfers and signature forgery. This specialized guarantee is required when transferring or selling securities, particularly in situations involving estate transfers, corporate securities, or significant ownership changes. The document emerged from the need for standardized signature verification in securities markets and has become a fundamental requirement for many securities transactions. Bank Medallion Guarantees can only be issued by authorized financial institutions that participate in recognized guarantee programs, with these institutions assuming liability for the authenticity of signatures and the legitimacy of transactions. The guarantee must comply with Canadian banking regulations and securities transfer laws, providing a secure method for processing securities transfers while protecting the interests of all parties involved.

What sections should be included in a Bank Medallion Guarantee?

1. Document Header: Contains the bank's letterhead, document title 'Medallion Guarantee', and unique guarantee stamp number

2. Security Holder Information: Details of the registered owner(s) of the securities, including full legal name, address, and contact information

3. Securities Description: Detailed description of the securities being guaranteed, including CUSIP number, quantity, and issuer information

4. Transaction Details: Nature of the transaction requiring the guarantee (e.g., transfer, sale, name change)

5. Identity Verification Statement: Confirmation that the security holder's identity has been verified with specific details of identification provided

6. Guarantee Statement: The formal guarantee language stating the bank's verification of the signature and transaction authenticity

7. Authorization: Signature block for the authorized bank officer, including their name, title, and medallion stamp

8. Bank Information: Complete details of the guaranteeing institution, including branch information and contact details

What sections are optional to include in a Bank Medallion Guarantee?

1. Capacity Verification: Required when the signatory is acting in a specific legal capacity (e.g., executor, trustee, corporate officer)

2. Corporate Resolution: Required for corporate securities to verify the authority of the signing officer

3. Estate Documentation: Required for estate transfers, including reference to relevant probate or letters of administration

4. Value Limitation Statement: Required when the guarantee is subject to specific value limitations based on the guaranteeing institution's program level

5. Special Instructions: Added when specific handling or processing instructions are required for the transfer agent

What schedules should be included in a Bank Medallion Guarantee?

1. Schedule A - Additional Securities: List of additional securities when multiple securities are being guaranteed in the same transaction

2. Schedule B - Supporting Documents: List of supporting documents reviewed by the guaranteeing institution (e.g., death certificates, corporate resolutions, trust documents)

3. Appendix 1 - Specimen Signatures: When required, contains verified specimen signatures of authorized signers

4. Appendix 2 - Terms and Conditions: Standard terms and conditions of the medallion guarantee program applicable to the transaction

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Canada

Publisher

Ƶ

Document Type

Bank Guarantee

Sector

Banking

Cost

Free to use
Relevant legal definitions

























Clauses




















Relevant Industries

Banking

Financial Services

Securities and Investment

Wealth Management

Estate Administration

Corporate Services

Trust Services

Investment Banking

Relevant Teams

Securities Operations

Compliance

Risk Management

Wealth Management

Estate Services

Corporate Services

Legal

Branch Operations

Investment Services

Trust Administration

Relevant Roles

Bank Branch Manager

Securities Operations Officer

Compliance Officer

Trust Officer

Estate Services Manager

Wealth Management Advisor

Securities Transfer Agent

Risk Management Officer

Banking Services Manager

Corporate Services Officer

Investment Advisor

Legal Compliance Manager

Industries





Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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