Maryland Marijuana License Bond
What is a Maryland Marijuana License Bond?
It is monetary security required by the Natalie M. LaPrade Medical Marijuana Commission. It provides coverage for any damages due to the failure of the licensee to comply with the required legal obligations.
This is pursuant to the Health General Article, Sections13-3301—13-3303 of the Annotated Code of Maryland.
Who is required to get a Maryland Marijuana License Bond?
Persons who are applying for the following types of license are required to secure a Marijuana-Cannabis Surety Bond:
- Medical Marijuana Grower License
- Medical Marijuana Grower Acting as a Dispensary License
- Medical Marijuana Processing Dispensary License
A Medical Marijuana Grower is a person who can perform the following functions once licensed:
- Cultivates, manufactures, processes, packages, or dispenses medical marijuana, processes medical marijuana products.
- Is licensed by the Natalie M. LaPrade Commission to provide medical marijuana to a program, a qualifying patient, a caregiver, or to a licensed dispensary.
- Grow medical marijuana varieties with proposed cannabinoid profiles and evidence of success in alleviating symptoms of specific diseases or conditions.
A Medical Marijuana Grower Acting as a Dispensary is a dispensary that acquires, possesses, repackages, processes, transfers, transports, sells, distributes, or dispenses, products containing marijuana, related supplies, related products including tinctures, aerosols, oils, or ointments, or educational materials for use by a qualifying patient or caregiver.
A Medical Marijuana Processing Dispensary is a dispensary that manufactures usable medical marijuana into a medical marijuana concentrate or manufactures medical marijuana-infused products.
How does a Maryland Marijuana License Bond work?
A bond such as this one is a legally binding contract among these 3 parties:
- Principal
- Medical Marijuana Grower License applicant/licensee
- Medical Marijuana Grower Acting as a Dispensary License applicant/licensee
- Medical Marijuana Processing Dispensary License applicant/licensee
*Each must furnish an individual bond
- Obligee - Natalie M. LaPrade Medical Marijuana Commission
- Surety - Surety bond provider
The Obligee requires this bond to ensure that the Principal will comply with the relevant statutes of the State as well as the rules and regulations of the Natalie M. LaPrade Medical Marijuana Commission.
Through this surety bond, the Obligee is also assured that it can recover any financial losses if the Principal defaults on its obligations.
The Surety will be the one to pay the Obligee should the latter file a bond claim due to a default; however, the Principal must repay the Surety after.
How much does a Maryland Marijuana License Bond cost?
The bond premium will depend on the bond amount and the license applicant’s/licensee’s credit score. The bond amount will be determined by the Natalie M. LaPrade Medical Marijuana Commission.
If the license applicant/licensee has an excellent credit score, he or she will only pay as little as 1% of the bond amount.
If you know your bond amount right now, you can get your FREE MEDICAL MARIJUANA BOND QUOTE HERE.
How to get a Maryland Marijuana License Bond
BOND APPLICATION
You must first apply for this type of surety bond. If you are ready to do this now, you may APPLY HERE!
ASSESSMENT
You will be asked to submit a few important information that our underwriter will need to assess the following:
- Your job or business history
- Your credit score
- Your financial strength
INDEMNITY AGREEMENT AND BOND PREMIUM
The bond will immediately be issued once the indemnity agreement is signed and the bond premium has been paid.