Signature guarantee program
(g) Signature guarantee program. (1) A registered transfer agent shall be deemed to comply with paragraph (c) of this section if its standards and procedures include: (i) Rejecting a request for transfer because the guarantor is neither a member of nor a participant in a signature guarantee program; or (ii) Accepting a guarantee from an eligible guarantor institution who, at the time of issuing the guarantee, is a member of or participant in a signature guarantee program. (2) Within the first six months after revising its standards and procedures to include a signature guarantee program, the transfer agent shall not reject a request for transfer because the guarantor is neither a member of nor participant in a signature guarantee program, unless the transfer agent has given that guarantor ninety days written notice of the transfer agent's intent to reject transfers with guarantees from non-participating or non-member guarantors. (3) For purposes of paragraph (g) of this section, the term signature guarantee program, means a program, the terms and conditions of which the transfer agent reasonably determines: (i) To facilitate the equitable treatment of eligible guarantor institutions; and (ii) To promote the prompt, accurate and safe transfer of securities by providing: (A) Adequate protection to the transfer agent against risk of financial loss in the event persons have no recourse against the eligible guarantor institution; and (B) Adequate protection to the transfer agent against the issuance of unauthorized guarantees.