Oklahoma Cannabis Surety Bond
What is an Oklahoma Cannabis Surety Bond?
It is a type of surety bond that is required of commercial medical marijuana license applicants in Oklahoma.
Commercial medical marijuana license applicants are the following:
- Growers – the license will allow businesses to legally grow marijuana in Oklahoma. Once licensed, growers will be able to sell to dispensaries and processors.
- Processors – the license will allow businesses to legally process marijuana for medical purposes only. Licensed processors will be allowed to sell marijuana to dispensaries as well as process concentrated form for the use of licensed medical marijuana patients.
- Dispensaries – licensed dispensaries will be allowed to legally sell medical marijuana and medical marijuana products, which includes seedlings and plants. Licensed dispensaries can only sell marijuana to the following:
- Research license holders
- Patient license holders
- Caregiver license holders
- Parent or legal guardian named on a minor patient’s license
The license of the aforementioned persons should be verified with the OMMA system by the licensed dispensary prior to every transaction.
- Transportation or transporters of medical marijuana – Licensed transporters will be legally allowed to transport medical marijuana for licensed growers, licensed processors, and licensed dispensaries.
The surety bond requirement is mandated by the State Question 788, which legalizes medical marijuana in Oklahoma. A new section will be added to the Title 63 of the Oklahoma Statutes and the Oklahoma Administrative Code (OAC) 310:681.
How does an Oklahoma Cannabis Surety Bond work?
A surety bond is a legal agreement between these parties:
- Principal – the license applicant. The primary responsibility of the principal is to fulfill the obligations that are stated in the bond.
- Obligee – the Oklahoma State Department of Health. An obligee is a bond’s beneficiary.
- Surety – the issuer of the bond and the party who will be liable – along with the principal – for the failure of the principal.
A Marijuana-Cannabis Surety Bond will serve as a guarantee to the Oklahoma Medical Marijuana Authority and the Oklahoma State Department of Health that the principal will fulfill his or her statute-based obligations once licensed.
If the principal defaults on his or her obligations, the obligee will be eligible to file a claim against the surety bond.
If a claim is filed, the principal is expected to take action in order to resolve the claim. If the principal fails to take action, the surety will remind the principal of his or her bond obligations.
If no action is taken, the surety will investigate the claim. If the claim is not valid, then no further action will be taken.
However, if the claim is valid, the surety will step in and pay the obligee for the losses incurred due to the principal’s offense. The principal will then have to reimburse the surety for the payments made.
How much should I pay (premium) for an Oklahoma Cannabis Surety Bond?
The bond premium is heavily dependent on the principal’s credit score. If the principal has a good credit score, the premium will be lower.
Those who have bad credit scores may still be able to get a bond, but their bond premiums will be higher because of the higher risks involved.
Additionally, the underwriter may need to see financial statements (personal and company) in order to determine the risk.
How can I get an Oklahoma Cannabis Surety Bond?
We – Surety Bond Authority – are licensed to provide an Oklahoma cannabis surety bond.
We have created a streamlined bond process so that you can get your bond in the easiest and fastest way possible.
Here’s how to get bonded:
1. Apply for this surety bond. If you are ready to do that now, you may APPLY HERE!
2. After we have received your application, we will ask you to submit the necessary information needed for the underwriting process. These are the following:
- Your financial capability
- Your business or job performance history
- Your credit score
An expert underwriter will carefully evaluate all three in order to attain the best credit decision possible. To avoid any delay, the information that you should submit should be organized and concise.
3. Once you’ve signed the indemnity agreement and have paid the bond premium, your bond will be sent to you immediately.