What is a “signature guarantee”?

A signature guarantee is specifically related to the assurance that a signature is genuine. This is primarily provided by a financial institution, such as a bank, which confirms that the person who signed a document is indeed who they claim to be, and that they have the authority to execute the document. This assurance is often required for transactions involving securities, such as the transfer of stocks or bonds, where it is crucial to validate the authenticity of the signature to prevent fraud.

The concept of a signature guarantee is distinct from a notary's endorsement, which serves a different legal purpose, as notaries primarily verify the identity of the signer, administer oaths, and witness signatures. Additionally, not all notarizations require a signature guarantee; that requirement typically applies to specific financial transactions rather than all types of notarized documents. Lastly, a signature guarantee does not involve certification of legal advice provided; it solely pertains to the authenticity of a signature on a document.