Lake County Cannabis/Marijuana Surety Bond
What is a Lake County Cannabis/Marijuana Surety Bond?
It is required that a Principal post a surety bond to comply with the provisions of Lake county Industrial Hemp Ordinance 3087 prior to the establishment of a cannabis/marijuana business in Lake County.
A Lake County cannabis bond is secured to ensure that the Principal will follow all permit requirements and operation restrictions established in Lake County.
Who are the Parties involved in a Lake County Cannabis/Marijuana Surety Bond?
Like all other surety bonds, a Lake County cannabis bond involves three parties:
- Obligee: the state or municipality requiring the surety bond.
- Principal: the company that wants to operate in the marijuana industry and needs to get a license and a permit.
- Surety: the bond firm that provides the Principal with a financial guarantee in accordance with the Obligee's rules and laws
How much does it cost to secure this Surety Bond?
The surety bond cost is only a percentage of the bond amount. This cost is called the ‘bond premium’, which ranges between 1%-5% of the bond amount. It is important to note that your credit score will impact your bond premium.
The required bond amount is typically determined by the state or municipality where the license is required.
Get your FREE quote here to learn more about your bond costs and other requirements.
How do you get a Lake County Cannabis/Marijuana Surety Bond?
The initial step is to find a legitimate, state-authorized surety bond provider who has experience with this type of surety bond. Working with a professional surety bond agent will help you navigate the nuances and evaluate bond costs that suit your business's needs and budget.
A surety underwriter will examine your bonding capacity, character, and capital in detail. To see if you qualify for the bond, you'll need to provide the necessary documents.
The requirements for this surety bond are as follows:
- Completed bond application (the Surety will provide you a bond application form)
- Bond forms (as designed and mandated by the state regulation department)
- Financial documents (this includes your bank account statements, sources of income, balance sheets, personal and business capital, escrow accounts, etc.)
- Other requirements as needed (seller’s permit, facility permit to legally conduct business, etc.)
If you ever need this type of surety bond for your business, please do not hesitate to contact us!