A Medallion Signature Guarantee is proof that the signature accompanying your instructions is authentic. Most financial institutions issue them for a small fee. It is needed for some types of transactions, as listed below.
We realize that an extra errand can be inconvenient, but this is an important way that fund companies protect themselves and their investors from fraud. Here’s what to expect and where to go if you need one.
A Medallion Signature Guarantee may be executed by a member of a Medallion Guarantee program. Eligible members include commercial banks, trust companies, savings associations, credit unions and broker-dealers. You should verify with the institution that they can provide a Medallion Guarantee prior to signing. The guarantee stamp must state the words “Medallion Guaranteed” along with the name and member number of the granting institution and be signed by an authorized representative for the guarantor. A Notary Public is not an eligible guarantor. The financial institution may charge a nominal fee for this service.
For any form or letter of instruction that requires a Medallion Signature Guarantee, sign in front of the bank or savings and loan representative issuing the guarantee and be sure to send this original document to Homestead Funds. We cannot accept a copy or fax of a signature guarantee.
A Medallion Signature Guarantee is needed when you:
- Send written instructions to redeem amounts more than $50,000 in one day from any one fund in any one account, excluding tax withholding
- Instruct us to send redemption proceeds or fund distributions to an address other than your address of record or to a bank account other than your bank account of record
- Instruct us to make a redemption check payable to someone other than the account owner of record
- Request a redemption with proceeds to be sent by check within 30 days of having made an address change
- Instruct us to change your address and in the same letter of instruction authorize a redemption with proceeds to be sent by check to the new address
- Instruct us to exchange shares between differently registered accounts (there are a few exceptions to this, which you will find listed in the prospectus)
- Instruct us to add or change bank account information and request a redemption to the new bank account information on the same day
- Instruct us to transfer IRA assets from Homestead Funds to another custodian if the amount to be transferred is $250,000 or more
- Change your account registration (for example, from a jointly registered account to an individually registered account)
- Ask us to transfer non-retirement account assets directly to another institution or individual (for example, if you are giving a gift of shares)