Instructions for Finalizing a Trade
To properly complete a transaction, participants must take the following steps:
(1) Both parties must complete a standard contract and the buyer must deliver a certified check for the purchase price of the shares.
The parties should evidence the transaction by properly executing the Stock Sale and Purchase Agreement, which can be obtained by contacting the PTS Officer at (843) 716-6103 or at dfloyd@horrycountystatebank.com.
The Stock Sale and Purchase Agreement should include the number of shares sold, the total purchase price, and the purchase price per share. The seller should execute and mail the Stock Sale and Purchase Agreement to the buyer, who, upon receipt, should execute and mail to the seller this Agreement along with a certified check for the total amount of the purchase price of the shares.
Note that, in lieu of mailing the executed Stock Sale and Purchase Agreement and certified check, the parties may meet at a mutually agreeable location (including any branch of the Bank) to execute the Stock Sale and Purchase Agreement and deliver the certified check for the total amount of the purchase price of the shares.
(2) The seller must sign the stock certificate guaranteed by a medallion signature stamp.
The seller must have his signature "guaranteed" before the transfer agent will accept the transaction. Most transfer agents insist on signature guarantees because they limit their liability and losses if a signature turns out to be forged. To accomplish this, the seller may bring the stock certificate to the Bank where it will be simultaneously signed by the seller and guaranteed by the Bank through the medallion signature stamp.
(3) The seller must fill out the appropriate transfer information on the back of the stock certificate.
The seller must list his social security number or tax identification number, the number of certificated shares to be transferred, and the name, address, date and telephone number of the buyer (or his designee) on the back of the stock certificate. This may be accomplished by prescribing the information directly on the back of the share certificate.
(4) The seller must mail the stock certificate to the transfer agent.
The seller must mail the stock certificate, along with the required transfer information, to the Company's transfer agent at the following address:
HCSB Financial Corporation
c/o Denise Floyd
PO Box 218
Loris, NC 29569
Upon receipt of the stock certificate, the transfer agent will cancel the stock certificate and issue and mail a new certificate to the buyer (or his designee) listed in the transfer information.
Note that, if desirable by the seller, the seller may prefer to delay mailing the stock certificate to the Company's transfer agent until the seller has received the certified check from the buyer.
(5) The seller must notify the PTS Officer of the final terms of the transaction.
The seller must notify the PTS Officer of the final terms of the transaction, including the date, price, and number of shares sold. This can be accomplished by delivering to the PTS Officer a copy of the executed Stock Sale and Purchase Agreement.
