Montana Marijuana Testing Laboratory License Bond
What is a Montana Marijuana Testing Laboratory License Bond?
As stated in Section 37.107.35 of the Montana Code Annotated, this surety bond is financial security in case the “licensee fails to adhere to the security plan approved by the department, or it otherwise operates the facility in a manner that allows for or results in theft, loss, or diversion of marijuana items.
Who is required to get a Montana Marijuana Testing Laboratory License Bond?
All marijuana testing laboratories within the State of Montana are required to obtain a Marijuana-Cannabis Surety Bond. A testing laboratory is a facility that performs the following functions:
- Measures the tetrahydrocannabinol and cannabidiol content of marijuana and marijuana-infused products
- Test marijuana and marijuana-infused products for toxins pesticides, solvents, water levels, and mold, and other contaminants
- Transport samples to be tested
How does a Montana Marijuana Testing Laboratory License Bond work?
A marijuana testing laboratory license bond is composed of 3 parties, namely:
Principal - Marijuana testing laboratory license applicant
Obligee - Montana Department of Public Health and Human Services
Surety - Surety bond provider
The Principal will be primarily responsible for fulfilling the obligations required by the Obligee. The Principal will also be the one to apply for this surety bond. The Obligee is the beneficiary of the bond and the party who is eligible to file a bond claim in case the Principal defaults on the bonded obligations.
The Surety will be the financial guarantor of the Principal. Through this surety bond, the Surety is assuring the Obligee that the Principal will do good on its promise and that the Obligee will be paid if a default occurs.
If a claim has been made against the bond, the Surety will first check its validity. If it’s valid and covered by the terms of the bond, the Surety will pay the Obligee up to the maximum face value of the bond. Once the Obligee has been paid, the Principal must then reimburse the Surety.
How much does a Montana Marijuana Testing Laboratory License Bond cost?
The bond amount is $25,000.
The Principal will only pay a small percentage of the bond amount, depending on his or her credit score.
For Principals that have excellent credit scores, the bond premium will only be 1% of the bond amount.
GET YOUR FREE SURETY BOND QUOTE HERE
How to get a Montana Marijuana Testing Laboratory License Bond
We’ve made obtaining one faster and easier! You can get your conservatorship bond in as fast as 24 hours as long as you have submitted all the requirements to us.
Just follow these simple steps:
- APPLY FOR THIS SURETY BOND HERE
- Submit the necessary documents such as, but not limited to, the following:
- The Principal’s job/business performance history
- The Principal’s credit score
- The Principal’s financial statement
- Sign the indemnity agreement
- Pay the bond premium