San Mateo County Cannabis/Marijuana Surety Bond
What is a San Mateo County Cannabis/Marijuana Surety Bond?
For those applying for licensing for their cannabis/marijuana business, a San Mateo County cannabis bond is required as an assurance for payment for the costs of confiscation, storage, clean-up, or abatement of any wastes, including regulatory oversight costs, and/or destruction of Cannabis when such costs are necessitated by a violation or other applicable federal, state, or local law.
This type of surety bond guarantees to protect the state or municipality (Obligee) if the licensing applicant (Principal) should engage in fraudulent activities as well as protect the safety, health, and welfare of the state residents by controlling, regulating, and taxing such businesses.
How does a San Mateo County Cannabis/Marijuana Surety Bond work?
A San Mateo County cannabis bond will serve as an enforceable agreement among three parties, specifically:
Principal – the entity applying for the surety bond
Obligee – the state or municipality requiring the surety bond
Surety – the Surety Bond provider
If the Principal performs misconduct or violation, both the Principal and the Surety will be held liable for the Obligee's claims.
Before being settled, the claim will be confirmed by the Surety. The Surety will evaluate the claim to see if it is valid. The Principal will compensate the Surety for the payments made after the Surety has settled the claim.
What is the cost for a San Mateo County Cannabis/Marijuana Surety Bond?
The bond premium will depend on the applicant’s credit score. Those who have excellent credit scores will be eligible to pay as little as 1% of the total bond amount.
If you have determined your bond amount, you may check your bond premium by getting your FREE QUOTE HERE from us!
How do you easily obtain a San Mateo County Cannabis/Marijuana Surety Bond?
The first thing to do is to apply for this bond HERE.
We will begin processing your application as soon as we receive it. You will be contacted by one of our experienced surety bond agents to discuss the next steps, and you will be guided through the entire process.
The following will be assessed by the underwriter during the prequalification step:
- Your financial strength
- Your credit score
- Your job/business performance history
Once that’s done, you’ll be asked to sign an indemnity agreement and the bond will be immediately issued and sent to you.