Erasure Guarantee
Categories: Insurance, Regulations, Trading
"You can't erase my documents and then claim that they were real. (Neener^2)"
An erasure guarantee is a legitimacy claim, i.e. an accredited institution guarantees that the signatures, documents, and other supporting materials are real and legit and honest and transfer-worthy. Why does this matter? Because there are bad people around us all the time...people who will fake, lie, cheat, deceive, and counterfeit official-looking securities documents, trying to bilk Ma and Pa Kettle out of their hard-earned savings.
The erasure guarantee protects the unprotected, and guarantees that the securities claiming to be transferred are real.
Think of the E.G. as a kind of securities condom, such that if it later turns out that the securities were fraudulent, then the guarantor becomes the new parent, paying all the bills and making the seller of that security financially...whole.