Georgia Hemp Processor Permit Bond
What is a Georgia Hemp Processor Permit Bond?
Before anything else, a Marijuana-Cannabis Surety Bond is now required by state agencies to anyone planning to open establishments before they can manufacture, cultivate, process, sell, distribute, and supply medical and recreational marijuana in states that legalized them.
In the State of Georgia, it is financial security required by the Georgia Department of Agriculture. This surety bond guarantees the following:
- The hemp processor will abide by the obligations stated in the relevant section of the Georgia Hemp Farming Act and the rules and regulations of the Georgia Department of Agriculture
- The Surety will pay the Obligee of the bond should the licensed hemp processor violates any of its bonded obligations
Who is required to get a Georgia Hemp Processor Permit Bond?
All hemp processors in the State of Georgia are required to get this surety bond unless otherwise stated.
Once licensed, the hemp processor is legally authorized to handle and process hemp. Hemp is defined in the Georgia Hemp Farming Act as “the Cannabis sativa L. plant and any part of such plant, including the seeds thereof and all derivatives, extracts, cannabinoids, isomers, acids, salts, and salts of isomers, whether growing or not, with the federally defined THC level for hemp or a lower level.”
Aside from this surety bond, the hemp processor license applicant must fulfill the following:
- Complete the Georgia hemp processor application form then mail it to this address:
Georgia Department of Agriculture Hemp Program
Room 210 19 Martin Luther King, Jr. Dr. SW
Atlanta, GA 30334
- Obtain affidavits of the agreement or intended agreement with each grower if the hemp processor intends to process hemp grown by a licensed Georgia hemp grower
- Fingerprinting and background checks for all persons holding beneficial interest in the permit such as the individual applicant, owner, and key participants of a business
- Pay the application fee of $25,000 to the Georgia Department of Agriculture
How does a Georgia Hemp Processor Permit Bond work?
Through this surety bond, the Surety is guaranteeing the fulfillment of the Principal’s (hemp processor) duties once licensed. If the Principal defaults on its bonded obligations, the Obligee can file a claim against the bond to recover the losses it has incurred.
The Surety will first investigate the validity of the claim. If the claim is valid, the Surety will pay the Obligee. The Principal must reimburse all the payments made by the Surety.
How much does a Georgia Hemp Processor Permit Bond cost?
The bond amount is $100,000.
The bond premium will be a percentage of the bond amount, depending on the Principal’s credit score. Those who have excellent credit scores will be eligible to pay just 1% of the bond amount.
How to get a Georgia Hemp Processor Permit Bond
Just follow these simple steps:
- You may apply for this bond HERE.
- Submit the necessary documents such as, but not limited to, the following:
- Job/business performance history
- The Principal’s credit score
- The Principal’s financial statement
- Sign the indemnity agreement
- Pay the bond premium