Post by TexasPride on Dec 4, 2005 3:20:01 GMT -6
Posted by Digby:
I just went through the process, so I wanted to document what happened when and why. This should answer the questions that others have.
The first thing to know is that on the back of your CMKX cert, at the bottom, is a note:
*Notice Signature Guaranteed:
Signature(s) must be guaranteed by a firm which is a member of a registered national stock exchange, or by a bank (other than a savings bank), or a trust company. The guaranteeing firm must be a member of the Medallion Guarantee Program.
The Medallion Guarantee Program is basically a notary system used by financial institutions. The Medallion is a greenish ink stamp that says:
What they are saying is that they are guaranteeing that the signature(s) on the cert or accompanying stock transfer document(s) are who they say they are.
When you go to your bank to have the signature "Medallioned", you should call first to find out if that branch (or bank for that matter) is a member of the Medallion program and has the capability to do this function. Many places require an appointment.
I talked with 1st Global Stock Transfer, LLC to make sure we were doing everything right. What I was told to do was have the cert Medallioned and the back of the cert filled in. A letter of instruction must accompany the cert and a check for the appropriate fees. She also told me what this letter of instruction had to include. I am including a sample of what I sent them.
When filling out the back of the cert, there is one line that looks like this:
_____________________________ Attorney
to transfer the said stock on the books of the within named…
The lady at 1st Global told me to leave this line blank. She checked with someone off-line to verify this.
Letter of instruction looked like this:
You will have to adjust the amout of your check and what is in the Letter of Instruction to account for the number of certs you are dealing with. For example, if you have three certs, all from the same seller with the same spelling of names on the cert, there would be 3 times the fees to cancel and reissue in your name ($49.50+$49.50+$25).
My understanding is that you will need a separate Letter of Instruction for each different spelling of the Seller’s name on the various certs.
When sending the certs to the transfer agent, the recommended procedure is sending the cert(s) by a method that is insured & with signature required. The amount of the insurance should be enough to cover the costs of getting replacement cert(s) and processing.
That’s about all there is to it. Hope this helps someone.
I just went through the process, so I wanted to document what happened when and why. This should answer the questions that others have.
The first thing to know is that on the back of your CMKX cert, at the bottom, is a note:
*Notice Signature Guaranteed:
Signature(s) must be guaranteed by a firm which is a member of a registered national stock exchange, or by a bank (other than a savings bank), or a trust company. The guaranteeing firm must be a member of the Medallion Guarantee Program.
The Medallion Guarantee Program is basically a notary system used by financial institutions. The Medallion is a greenish ink stamp that says:
Signature Guaranteed
Medallion Guaranteed
_________________
Authorized Signature
(Authorizer's number)
Securities Transfer Agents Medallion Program
Medallion Guaranteed
_________________
Authorized Signature
(Authorizer's number)
Securities Transfer Agents Medallion Program
What they are saying is that they are guaranteeing that the signature(s) on the cert or accompanying stock transfer document(s) are who they say they are.
When you go to your bank to have the signature "Medallioned", you should call first to find out if that branch (or bank for that matter) is a member of the Medallion program and has the capability to do this function. Many places require an appointment.
I talked with 1st Global Stock Transfer, LLC to make sure we were doing everything right. What I was told to do was have the cert Medallioned and the back of the cert filled in. A letter of instruction must accompany the cert and a check for the appropriate fees. She also told me what this letter of instruction had to include. I am including a sample of what I sent them.
When filling out the back of the cert, there is one line that looks like this:
_____________________________ Attorney
to transfer the said stock on the books of the within named…
The lady at 1st Global told me to leave this line blank. She checked with someone off-line to verify this.
Letter of instruction looked like this:
LETTER OF INSTRUCTION
(date)
Please transfer the X,XXX,XXX shares of CMKM Diamonds, Inc. stock encompassed by cert number XXXXX from:
(Seller’s Name)
(Seller’s Address)
(Seller’s City, State & Zip)
(Seller’s Social Security Number)
to the new owner:
(Buyer’s Name)
(Buyer’s Address)
(Buyer’s City, State & Zip)
(Buyer’s Social Security Number)
(Buyer’s Home Phone Number)
(Buyer’s Daytime/Work Phone Number)
Enclosed find a check for $58 Payable to:
1st Global Stock Transfer, LLC
7361 Prairie Falcon Rd.
Las Vegas, NV 89128
These funds to cover:
$16.50 to cancel the original certificate;
$16.50 to issue the new certificate;
$25.00 Fed-X charges to send the new certificate
--------
$58.00
(date)
Please transfer the X,XXX,XXX shares of CMKM Diamonds, Inc. stock encompassed by cert number XXXXX from:
(Seller’s Name)
(Seller’s Address)
(Seller’s City, State & Zip)
(Seller’s Social Security Number)
to the new owner:
(Buyer’s Name)
(Buyer’s Address)
(Buyer’s City, State & Zip)
(Buyer’s Social Security Number)
(Buyer’s Home Phone Number)
(Buyer’s Daytime/Work Phone Number)
Enclosed find a check for $58 Payable to:
1st Global Stock Transfer, LLC
7361 Prairie Falcon Rd.
Las Vegas, NV 89128
These funds to cover:
$16.50 to cancel the original certificate;
$16.50 to issue the new certificate;
$25.00 Fed-X charges to send the new certificate
--------
$58.00
You will have to adjust the amout of your check and what is in the Letter of Instruction to account for the number of certs you are dealing with. For example, if you have three certs, all from the same seller with the same spelling of names on the cert, there would be 3 times the fees to cancel and reissue in your name ($49.50+$49.50+$25).
My understanding is that you will need a separate Letter of Instruction for each different spelling of the Seller’s name on the various certs.
When sending the certs to the transfer agent, the recommended procedure is sending the cert(s) by a method that is insured & with signature required. The amount of the insurance should be enough to cover the costs of getting replacement cert(s) and processing.
That’s about all there is to it. Hope this helps someone.