Michigan Medical Marijuana Facility Bond
What is a Michigan Medical Marijuana Facility Bond?
It is a legal contract required by the Michigan Medical Marijuana Agency of the Department of Licensing and Regulatory Affairs (LARA) to secure the compliance of the marijuana facility to the relevant rules, regulations, and statutes.
A Marijuana-Cannabis Surety Bond will also serve as a means of financial recourse for the Department if the marijuana facility violates any of the obligations.
This requirement is under Section 333.211 of the Medical Marijuana Facilities Licensing Act.
Who is required to get a Michigan Medical Marijuana Facility Bond?
Persons who are seeking a medical marijuana facility license are required to furnish this bond.
Aside from this surety bond, the license applicant must submit the following to the
Michigan Medical Marijuana Agency of the Department of Licensing and Regulatory Affairs (LARA):
- A completed application form. You may fill out the medical marijuana facility online application form.
- A description of the type of marijuana facility
- A copy of the proposed marijuana facility plan
- Confirmation of compliance with the municipal ordinance
- The disclosure of the true party of interest
- The disclosure of persons that have a beneficial interest
- Additional information and documents requested by the Department not inconsistent with the act and these rules
- Other documents, disclosures, or attestations requested by the Department
- Pay the nonrefundable application fee ($6,000) to the Department
How does a Michigan Medical Marijuana Facility Bond work?
This surety bond ensures that the Principal (medical marijuana facility licensee/license applicant) will fulfill the required tasks. The Surety (surety bond provider) will partner with the Principal for this purpose.
Through this bond, the Surety is also assuring the Obligee (Michigan Medical Marijuana Agency of the Department of Licensing and Regulatory Affairs) that the monetary losses brought about by the default of the Principal will be paid by the Surety.
Under the indemnity agreement, any payment made by the Surety due to a bond claim must be reimbursed by the Principal.
How much does a Michigan Medical Marijuana Facility Bond cost?
The bond amount must not be less than $100,000.
The bond premium will depend on the credit score of the Principal. If the Principal has an excellent score, he or she will be eligible to pay as low as 1% of the bond amount.
You may check your bond premium HERE.
How to get a Michigan Medical Marijuana Facility Bond
You can easily get this surety bond by following these simple and secured steps:
STEP 1: Apply for your surety bond HERE
STEP 2: Submit the requirements for this bond. Some of these are as follows:
- Financial statements
- Credit score
- Job/business performance history
STEP 3: Sign the indemnity agreement
STEP 4: Pay the bond premium