System and process for guaranteeing signatures on securities

• US 5,926,552 A
• Filed: 01/24/1997
• Issued: 07/20/1999
• Est. Priority Date: 01/24/1997
• Status: Expired due to Term

• Current Assignee: Kemark Financial Services Incorporated
• Original Assignee: Paul Mckeon
• Inventors: McKeon, Paul
• Primary Examiner(s): CAIN, DAVID C
• Application Number:
  US08/788,686
• Time in Patent Office: 907 Days
• Field of Search: 380/23, 380/24, 380/51, 380/55
• US Class Current: 380/51
• CPC Class Codes: G06Q 20/00 Payment architectures, schemes or protocols apparatus for performing or posting payment transactions G07F7/08, G07F19/00; electronic cash registers G07G1/12
• CPC Class Codes: G06Q 20/02 involving a neutral party, e.g. certification authority, notary or trusted third party [TTP]
• CPC Class Codes: G06Q 20/3821 Electronic credentials
• CPC Class Codes: G06Q 20/3825 Use of electronic signatures
• CPC Class Codes: G07F 17/42 for ticket printing or like apparatus , e.g. apparatus for dispensing of printed paper tickets or payment cards
• CPC Class Codes: G07F 7/08 by coded identity card or credit card or other personal identification means without personal verification means G07F7/02
• CPC Class Codes: G07F 7/12 Card verification

Abstract

A system and process for guaranteeing the signatures on securities to be transferred, comprising an electronic storage medium adapted to generate a profile of an individual guarantor enrolled in a signature guarantee program. The profile is divided into fields which can be sorted and used to generate all program documents and reports related to each guarantor. The storage medium maintains lists of qualified guarantors for access by transfer agents. A medallion(s) is issued to each guarantor, carrying information to identify the guarantor. Application of the medallion to a security notifies a transfer agent that the signature authorizing the transfer of the security is valid and in conformance with the law as set forth in the Uniform Commercial Code of the United States. A communications system is connected to the database and is adapted to transmit information from a selected profile in the database to a manufacturer for shipment of an individualized medallion directly to a guarantor. The communications system is also adapted to transmit a list of guarantors and lists of lost, stolen or destroyed medallions to transfer agents.

Claims

1. A system for guaranteeing the signatures on securities to be transferred, comprising:

an electronic storage medium adapted to receive guarantor information and generate a profile of a guarantor to be enrolled in a signature guarantee program, said profile being fully integrated and adapted to be sorted and used to generate documents including correspondence, order forms and regulatory reports related to each guarantor and program activity, wherein said storage medium maintains a list of qualified guarantors for access by transfer agents to qualify guarantee;

a medallion containing information sufficient to identify an individual guarantor, wherein the application of the medallion on a security notifies a security transfer agent that the signature authorizing the transfer of the security is valid; and

an integrated communication system connected to said storage medium, said communication system adapted to transmit information from a selected profile in the database to a medallion manufacturer for shipment of an individualized medallion directly to a guarantor and transmit a confirmation to a guarantor and a program administrator that a medallion order was processed.

2. The system according to claim 1, wherein the communication system is further adapted to transmit a list of qualified guarantors to transfer agents and market regulators.

3. The system according to claim 1, wherein the communication system is further adapted to transmit a list of lost, stolen or destroyed medallions to transfer agents.

4. The system according to claim 1, further comprising an imaging system capable of scanning information submitted by a guarantor enrolling in the program, storing said information in a computer and linking such stored information to the electronic storage medium.

5. The system according to claim 1, further comprising an on-line communication access site connected to the electronic storage medium and containing forms for guarantors to enroll in the signature guarantee program and lists of qualified guarantors, wherein the access site is connected to the communications system, such that an individual connecting to the access site may obtain enrollment forms, lists of qualified guarantors and any such data as they are authorized.

6. The system according to claim 1, wherein the communication system includes a message system connected to the storage medium, the message system being adapted to contact transfer agents to notify them of changes in the guarantor registration and of lost, stolen or destroyed medallions.

7. The system according to claim 1, wherein the medallion is affixed to the security in the form of an inked stamp.

8. The system according to claim 7, wherein the ink used to affix the medallion to a security changes color when viewed from different angles.

9. The system according to claim 1, wherein the medallion is affixed to the security in the form of a glued sticker.

10. The system according to claim 9, further comprising radio frequency resonant material embedded within the sticker glue and sticker stock, wherein the resonant material contains unique identification information, and wherein tampering with the sticker disrupts the resonant material and scrambles the unique information, voiding the transfer.

11. The system according to claim 7, further comprising radio frequency resonant material embedded within the ink and security stock, wherein the resonant material encodes for specific information about the specific medallion which information can be held in a transfer agent system as an algorithm for future qualification of a document.

12. The system according to claim 1, wherein the medallion comprises a two-dimensional bar code.

13. The system according to claim 12, wherein the bar code is unique for each security transferred.

14. A process for guaranteeing the signatures on securities to be transferred, comprising:

enrolling guarantors in a signature guarantee program;

inputting information submitted by enrolled guarantors for storage;

creating a profile for each guarantor, said profile being divided into fields that can be used to automatically generate documents and reports required to manage the program;

linking the created profile to the input information;

ordering at least one medallion for each guarantor, comprising electronically sending a request to a medallion manufacturer and sending said medallions to the guarantors, wherein each medallion identifies an enrolled guarantor;

providing a list of enrolled guarantors that is accessible to transfer agents and regulators;

transmitting lists of lost, stolen or destroyed medallions to transfer agents and regulators; and

guaranteeing a signature on a security to be transferred by affixing a guarantor'"'"'s medallion on the security, which medallion can then be verified by a transfer agent against the list of guarantors.

15. The process of claim 14, wherein the guarantor profile and list of guarantors is stored in a secure computer database.

16. The process of claim 14, wherein the step of providing a list of qualified guarantors may be accomplished using an on-line computer access site.

17. The process of claim 14, wherein the step of transmitting lists of lost, stolen or destroyed medallions is accomplished using a broadcast facsimile system.

18. The process according to claim 14, wherein the medallion comprises a two-dimensional bar code.

19. The process according to claim 18, wherein the bar code is unique for each security transfer.

20. The process according to claim 14, wherein the medallion is affixed to the security in the form of a sticker, and wherein the sticker contains radio frequency resonant particles which can be read by a scanner.

21. The process according to claim 14, wherein the medallion is affixed to the security by an inked stamp and wherein the ink is unique to the signature guarantee program.

22. A system for electronically guaranteeing the signature on a security to be transferred, comprising:

an electronic storage system adapted to generate and store;

(a) a profile of an individual guarantor enrolled in a signature guarantee program, said profile being divided into fields which can be sorted and used to generate documents related to each guarantor,

(b) an identification number for each guarantor,

(c) a list of qualified guarantors for access by transfer agents;

(d) a locator code for an individual security transfer;

(e) a transfer agent code for identifying transfer agents; and

(f) a guarantor instruction file containing a stockholder'"'"'s name, address, stock, certificate number, CUSIP number and transfer instructions;

a communications system connected to the storage system adapted to;

(a) transmit the list of guarantors to transfer agents and regulators;

(b) allow a guarantor access to the storage system through the use of the guarantor'"'"'s identification number;

(c) transmit the locator code to a guarantor contacting the storage system to identify a particular stock transfer;

(d) receive instructions from a guarantor guaranteeing the validity of a stockholder'"'"'s transfer request of an individual security, including stockholder'"'"'s name and address, the security'"'"'s certificate number, CUSIP number, transfer instructions, (f) and the transfer agent code;

(e) communicate said locator code to said guarantor, who can then communicate the locator code to a stockholders and transfer agents; and

(f) electronically transmit the instructions to a transfer agent upon receiving the locator code from a transfer agent,

wherein the signature on the transfer of a security is guaranteed by communicating the locator code to a transfer agent who can then use the locator code to locate the guarantor instructions in the storage system.

23. The system according to claim 22, further comprising an on-line access site connected to said communication system for accessing the list of qualified guarantors, said access site including a subdirectory corresponding to the transfer agent code for each transfer agent, said access site being adapted to receive guarantee instructions accompanied by a transfer agent code, and which subdirectory can then be accessed by the transfer agent to whom the subdirectory corresponds to verify a signature guarantee request.

24. The system according to claim 22, further comprising a public key/private key encryption mechanism adapted to encrypt the guarantor instructions to prevent unauthorized access, and decrypt the instructions upon receipt by the transfer agent.

25. The system according to claim 22, wherein the security certificate contains encrypted information identifying the certificate on its face, said encrypted information being in the form of radio frequency resonant material or a two-dimensional bar code, wherein the transfer agent file also contains the encrypted information from the security certificate,

such that a transfer agent receiving the certificate can scan the certificate and decrypt the encrypted information to verify the authenticity of the certificate, and can also decrypt the encrypted information received from the guarantor, and compare it with the information the transfer agent has on file to verify the validity of a guarantee and associated documents.

26. A process for electronically guaranteeing the signature on a security to be transferred, comprising the steps of:

creating and storing a profile of an individual guarantor enrolled in a signature guarantee program in an electronic storage medium, the profile containing information about the guarantor and being divided into fields which can be sorted and used to generate correspondence and order forms related to each guarantor,

generating and storing personal identification numbers for each guarantor;

generating and storing a list of qualified guarantors for access by transfer agents and regulators;

generating a transfer agent code for each transfer agent in the program;

receiving and storing in said electronic storage medium instructions from a guarantor guaranteeing the validity of the signature on a security, said guarantor being granted access to the program by the guarantor'"'"'s personal identification number, the instructions including the stockholder'"'"'s name and address, the security'"'"'s certificate number, CUSIP number and the transfer agent code;

generating a locator code for an individual security transfer upon receiving the guarantor'"'"'s instructions;

transmitting the locator code to the guarantor who can then transmit the locator code to a stockholder;

transmitting the list of guarantors to transfer agents and regulators;

transmitting the instructions to a transfer agent upon receiving the locator code from the transfer agent; and

guaranteeing the signature on a transfer of a security by presenting a security certificate and communicating the locator code to a transfer agent, who can then access the guarantor'"'"'s instructions on the electronic storage medium.

27. The process according to claim 26, wherein the steps of receiving instructions from a guarantor and transmitting the instructions to a transfer agent is accomplished by an on-line computer network site, and further comprises the steps of:

transmitting guarantee instructions to the access site using a transfer agent code; and

generating a transfer agent subdirectory in the access site corresponding to the transfer agent code for receiving the guarantee instructions;

wherein the subdirectory is accessed by the transfer agent to whom the subdirectory applies to verify a signature guarantee.

28. The process according to claim 26, further comprising providing encrypting means for encrypting the guarantee instructions to prevent unauthorized access, and providing means for decrypting said instructions once they are retrieved by the proper transfer agent.

29. The process according to claim 26, further comprising the step of embedding encrypted information in the form of radio frequency resonant material in a security certificate to create a unique electronic profile on said certificate, such that a guarantor can scan the certificate and include the electronic profile information in the guarantor'"'"'s instructions, and a transfer agent receiving the guarantor'"'"'s instructions and the security certificate can decrypt the information, scan the security certificate, decrypt the encrypted information embedded in the security certificate, and compare the guarantor information with the information scanned from the certificate to verify the authenticity of the certificate and of the guarantee.

30. The process according to claim 26, further comprising the step of embedding encrypted information identifying an individual security certificate within the certificate, in the form of a two dimensional bar code, such that a guarantor can scan the certificate and include the encrypted information in the guarantor'"'"'s instructions, and a transfer agent receiving the guarantor'"'"'s instructions can decrypt the information, scan the security certificate, decrypt the encrypted information from the security certificate, and compare the guarantor information with the information scanned from the certificate to verify the authenticity of the certificate and of the guarantee.