Assignments and Powers of Substitution
The person selling a registered security must sign the security certificate to constitute good delivery. It is usually signed on the back of the security or on a detached sheet of paper and sent to the purchaser by registered mail. A detached assignment must contain a full description of the security, including the name of the issuer, the issue, the certificate number, and the amount. It must also appoint an attorney with power of substitution, allowing the attorney to act on the seller’s behalf.
Another method of assignment is to enter the name of a third party, usually the purchaser, on the certificate to safeguard the security in transit. The seller would sign and deliver a power of substitution to accompany the security’s delivery.
For proper assignment, the signatures on the back must exactly match the name that is printed on the front of the certificate. If the person has legally changed her name and the old na