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Security Liquidations:
Bankruptcy, Settlement or Other Litigation
Securities received as a result of a bankruptcy, settlement
or other litigation may require special processing. They are forwarded via registered mail
or special messenger with a cover letter including the following:
- Agency’s instructions for sale of security
- Agency Location Code for deposit of proceeds
- Reference the security
- Agency contact and telephone number
| (1) |
A security registered to the original owner must be transferred via an assignment
to the Secretary of the Treasury, Department of the Treasury, or an assignment in blank and must
be signed by either the original owner or the executor of an estate. |
- A security that has been assigned to the Secretary of the Treasury with the original
owner’s signature guaranteed by a commercial bank needs to be accompanied with a
cover letter with the appropriate Agency Location Code, a contact name, and telephone
number. No further documentation from the executive agency is necessary.
- A security that has been assigned to the Department of the Treasury from a bankruptcy
or settlement proceeding must show evidence of ownership. The evidence may be documented
by one or more of the following instruments:
- Bankruptcy Settlement Agreement
- Decree of Final Distribution
- Statement of Distribution
- Affidavit of Domicile
- Closing Statement
- The assignment must be accomplished on the back of the stock certificate or by using
one of the following documents:
- Irrevocable Stock or Bond Power
- Assignment Separate from Certificate
| (2) |
A security registered to the original owner and not transferred to the Department
of the Treasury can also be liquidated using an Assignment Separate from Certificate form. The
signature of the original owner or the executor of the estate must be guaranteed by a
commercial bank. |
- A security that has been assigned in blank for which the original owner’s
signature has been guaranteed by a commercial bank needs a cover letter with the
appropriate Agency Location Code, a contact name, and telephone number.
- The assignment must be accomplished on the back of the stock certificate or by using
one of the following documents:
- Irrevocable Stock or Bond Power
- Assignment Separate from Certificate
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Updated September 18, 2026
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