City of Coalinga Cannabis/Marijuana Surety Bond
What is a City of Coalinga Cannabis/Marijuana Surety Bond?
According to Section 9-5.128 of the Coalinga Municipal Code, no person or entity shall operate a commercial marijuana operation within the City of Coalinga without initially obtaining a commercial marijuana regulatory permit from the city government.
The regulatory permit shall be site-specific and shall identify the commercial marijuana activities that will be allowed at the site.
As part of the permit requirements, a $25,000 marijuana surety bond must be sufficiently filed to secure claims that occur under the Permit as they correlate to the destruction of the cannabis or cannabis products.
Typically, a copy of the bond form from the City of Coalinga is required.
How does a City of Coalinga Cannabis/Marijuana Surety Bond work?
Like all other surety bonds, a City of Coalinga cannabis bond is a three-way agreement between:
The Obligee: the governing entity that requires the surety bond that is specific to the business.
The Principal: the entity that will operate a business in the cannabis industry.
The Surety: the Surety is the bond firm that financially backs the Obligee, and if a bond claim is made, the Surety will pay the whole amount. The Principal would then reimburse the Surety for the payment made.
How much does it cost to secure a City of Coalinga cannabis bond?
The cost of the bond that you have to pay for is called the ‘bond premium’. The premium is only a percentage of the bond amount, and it varies based on the applicant's personal and business financial strength.
Please keep in mind that your credit score will play a big role in whether or not you qualify for a bond.
How do you secure this Surety Bond?
First, you should look for an authorized surety bond company that offers this type of surety bond.
Afterward, you will apply for the bond. You will do this by submitting a bond application.
Then, a surety underwriter will look at your personal and professional background to make sure you have the managerial skills to handle business transactions and operations.
To qualify, you may need to submit the following requirements, alongside your completed bond application:
- Financial documents MAY be required (bank account statements, escrow account balances, capital, sources of income, tax payment history, letters of credit, etc.)
- Bond forms
- Possible other requirements as needed (land use/facility use permit, seller’s permit, etc.)
We will issue the bond to you as soon as the underwriter has completed the pre-qualification process!