A customer delivers a municipal bond certificate to settle a trade. The certificate is registered in the customer's name but has not been endorsed or accompanied by a stock/bond power. Does this constitute good delivery?

Why D — No, because the certificate must be endorsed by the registered owner or accompanied by a signed bond power with a signature guarantee

For physical certificates to constitute good delivery, registered securities must be properly endorsed by the registered owner or accompanied by a signed stock/bond power (assignment separate from the certificate) with a medallion signature guarantee. Without proper endorsement or a bond power, the transfer agent cannot transfer ownership to the buyer. The signature guarantee protects against forged endorsements and is provided by a financial institution participating in a medallion signature guarantee program.