We are not aware of any law that directly addresses the retention period for documents related to signature guarantees. However, a signature guarantee creates unique, direct liability on the part of the bank that may warrant permanent retention. Under the Illinois Uniform Commercial Code, the guarantee of a signature of an indorser of a security certificate warrants that the signature was genuine, the signer had legal capacity to sign, and the signer was an appropriate person to indorse.

Because of these important considerations, we are aware of one ABA-provided sample policy that recommends permanent retention of all signature guarantees and supporting documentation.

For resources related to our guidance, please see:

• Illinois Uniform Commercial Code, 810 ILCS 5/8-306

• ABA Sample Procedures, Bank Officers in Guaranteeing Customers’ Signatures (“The bank’s current policy is that this documentation should be retained permanently, although this policy is under review.”)