Medical Marijuana Bond

Medical marijuana bonds protect the (currently) eighteen states and Washington D.C. that allow medical marijuana prescriptions to be written for specific ailments. As of now, Colorado is the only state that currently uses surety bonds to regulate the medical marijuana industry.

Medical marijuana bonds are similar to insurance policies in that they provide protection to a party who needs protections financially if the other party defaults or decides not to pay. If a business that provides medical marijuana ends up defaulting or doesn’t pay on taxes, the bonding company would be able to issue a payment to the state.

Medical marijuana bonds function the same way as other surety bonds. Three parties are bound together to ensure that industry standards are upheld. For medical marijuana bonds, the three parties included are the principal, obligee, and surety. The principal is the medical marijuana dispensary that maintains the bond as a pledge that taxes will be paid in accordance with the law, the obligee is the state agency that requires dispensaries to purchase a bond to reinforce industry standards, and the surety is the agency that issues the bond and backs the principal’s pledge to pay taxes appropriately.

The medical marijuana bond is a tax bond. It guarantees that the bonded medical marijuana dispensary will pay all taxes appropriately. If the dispensary fails to do this, the government can make a claim on the bond to collect compensation.


Application for


Current or expiring quote we are looking to beat:


Name of previous surety company writing to the bond:


Section I: Bond Applied for

Type of Bond

Effective Date

Expiration Date


Type of Company

CORP

LLC

DBA

Partnership

Bond Amount


(Obligee)


Obligee Address


Section II: General Information

Applicant's Name

Spouse Name


SS#

Spouse SS#

Home Phone


Residence Address

City

State

Zip


Status of Residency

Own

Rent

At Current Address Since


Date of Birth

Spouse Date of Birth

Business License Number


Business Name


Business Phone

Business Fax

Business Email


Business Address

City

State

Zip


Date Business BEGAN Under Present Individual or Firm Name

Business Tax ID


Has any company refused to issue bonds for any purpose?

Yes

No

Do you have any liens, claims or judgements against you?

Yes

No


Has applicant ever failed in business?

Yes

No

Has applicant filed bankruptcy in the last 10 years?

Yes

No


If yes, Chapter 7?

Yes

No

Chapter 11?

Yes

No

Chapter 13?

Yes

No


Date Filed for Bankruptcy?


Date of Discharge?


If yes to any, please explain:


Section III: Additional Parties

Name

Spouse Name


SS#

Spouse SS#

Home Phone


Home Address

City

State

Zip


Personal Financials

(if more than one owner, each has to fill out this app)

Statement of assets and liabilities as of


Assets Liabilities
Cash in Bank Notes Payable to Banks
Cash on Hand Notes to Others(excl. of equipment)
Stocks and Bonds Accounts Payable
Accounts Receivable Federal and State Income Tax Due
Notes Receivable All Other Taxes
Inventory Accruals, Payrolls, Etc.
Cash Value Life Insurance    
Equipment Due on Equipment
Real Estate Due on Real Estate
Other Assets Other Liabilities
    Surplus and Undivided Profits
    Capital Stock(if a corporation)
       
Total Assets Total Liabilities

Net Worth


Name of Owners

Name and Title of Officers

% of Ownership


Are you an insurance agent?

Yes

No

Agent License #

Agent State

Completion of this form constitutes permission for Cal Society Insurance Services to obtain customer information which will be used to determine bonding eligibility. This information will be held in the strictest confidence.