Crescent City Cannabis/Marijuana Surety Bond
What is a Crescent City Cannabis/Marijuana Surety Bond?
A Crescent City cannabis bond will be required from all operators, regardless of where they fall in the growth, processing, and distribution chain, in line with similar requirements imposed by the state, counties, and municipalities in California.
An individual must also file a Crescent City Cannabis/Marijuana Surety Bond in the amount of fifteen thousand dollars besides complying with the California cannabis bond statutes.
How does a Crescent City Cannabis/Marijuana Surety Bond work?
Essentially, like any other surety bond, a Crescent City cannabis bond is a legal agreement between three (3) parties:
- The Principal – is the license applicant. The principal's primary duty is to fulfill the bond's specified obligations.
- The Obligee – is the state or municipality requiring the licensing. The Obligee is the bond’s beneficiary.
- The Surety – the company that issues the bond and the party that, along with the principal, will be held responsible for the failure of the principal.
The obligee will be eligible to file a lawsuit against the surety bond if the principal fails to meet his or her obligations.
If a claim is filed, the principal is required to take action to resolve the claim. The surety will remind the principal of his or her bond responsibilities if the principal fails to act.
The surety will investigate the claim if no action is taken. No further action will be taken if the claim is found to be invalid.
If the claim is valid, however, the surety will step in and compensate the obligee for the losses suffered as a result of the principal's offense. The principal would then be responsible for reimbursing the surety for the payments made.
How much does it cost to secure this Surety Bond?
The bond premium is determined by the credit score of the principal. The premium would be lower if the principal has a good credit score.
Although a Principal with a low credit score will be able to obtain a bond, their bond premiums may be higher due to the increased risks involved.
In order to assess the risk, the underwriter can also require financial statements (personal and company).
Obtaining a Crescent City Cannabis/Marijuana Surety Bond
We are authorized to provide a Crescent City Cannabis/Marijuana Surety Bond, and we've created a straightforward bond process to ensure that you get your bond as quickly as possible.
Here’s what you need to do to get bonded:
- Apply for this surety bond. You can do this easily by APPLYING HERE!
- After we receive your application, we will ask you to submit the necessary information needed for the underwriting process. Please take note of the following:
- Your financial capability
- Your credit score
- Your business or job performance history
In order to make the best credit decision possible, an experienced underwriter would carefully analyze all three. To prevent any delays, make sure the information is well-organized and concise.
- Your surety bond will be sent to you immediately once you’ve signed the indemnity agreement and have paid the bond premium.