For medical marijuana dispensary owners in Oklahoma, the need to obtain a surety bond is essential. Recently, a number of states have legalized marijuana for both recreational and medical purposes.
Any business that grows or sells medical marijuana in Oklahoma is legally required to obtain a surety bond. A surety bond guarantees that a dispensary will operate as per the state’s laws, rules and regulations.
Understanding Medical Marijuana Surety Bond
A medical marijuana bond is not different from other surety bonds. There are three main parties involved, the dispensary owner (principal), the state (obligee) and the surety agency.
After reviewing a dispensary owner’s financial and non-financial circumstances, a surety agency issues the bond. The main purpose of the bond is to protect the obligee if the principal fails to perform their duties.
A medical marijuana bond is a license and permit bond. In other words, the bond is a guarantee that dispensaries will file and pay taxes on time. If a dispensary owner does not submit their taxes, the obligee can file a claim and the surety company will have to pay them.
Another reason why marijuana dispensaries must acquire a surety bond is to get a license. To run a legal dispensary in Oklahoma, you need a medical marijuana surety bond.
How to Apply for a Medical Marijuana Surety Bond in Oklahoma
The bond application process varies among states. However, to apply for a surety bond in Oklahoma, you need to submit your financial documentation to an underwriter. This may include your dispensary’s financial records, as well as your bank statements, your credit score, any liquids you own, and more.
If you are able to successfully meet the underwriter’s requirements, your application will be approved and the bond will be issued. The cost of a medical marijuana surety bond is 1 to 15 percent of the bond amount. However, the cost of the bond depends on a principal’s financial strength i.e. their credit score, financial circumstances, etc.
If you need information or quotes on medical marijuana bonds in Oklahoma, contact us.
As a reputable surety agency in Oklahoma, BondPro, Inc. offers medical marijuana and other surety bonds at the best possible rates.