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Montana Marijuana Bond

Starting and running a marijuana-related business in Montana often involves getting a special type of surety bond. Use the information below to learn about the basics of bonding.

What is a Montana Marijuana Bond?

You may also hear this type of surety bond referred to as a Montana medical marijuana bond or a Montana cannabis surety bond. All of them work the same way: they hold the bonded party financially responsible when the business breaks Montana marijuana laws. If a business breaks the law and that behavior results in damages - to an individual, business, or state agency - the wronged party may file a claim against the surety bond to get financial compensation.

How does a Montana Marijuana Bond Work?

Upon receiving a claim for damages, the surety agency that issues and backs the bond launches an investigation to determine whether the claim is true. Provided the details hold up under scrutiny, the surety agency settles the claim in full without further delay. At that point, the surety agency turns its attention to collecting the full amount of the claim (plus interest and fees) from the Montana marijuana bond holder who agreed to pay for all claims when entering into the surety bond agreement.

Who needs a Montana Marijuana Surety Bond?

At the time of writing, marijuana testing facilities need a surety bond as part of the licensure procedures in Montana. However, as the marijuana industry expands and evolves, most businesses involved will likely need a surety bond. Rely on a trusted surety agency like Viking Bond Service to help you determine if you need a bond and in what amount.

Why is it necessary to have a Montana Marijuana Surety Bond?

Regulatory agencies use surety bond requirements to discourage illegal behavior. Since a marijuana business knows it can (and likely will) be held financially accountable for any misbehavior, surety bonds discourage such behavior. They also provide a mechanism to hold a business accountable and ensure justice for anyone wronged. Given the sensitive nature of the marijuana industry, Montana appears likely to create additional surety bond requirements.

Who are the parties involved?

There are always three parties involved:

• Principal - The bonded party, meaning the marijuana business that obtains the bond and pays for all claims.
• Obligee - The party that writes the surety bond requirement and has the right to file claims against the bond if those requirements aren't met.
• Surety - The agency that issues and backs the bond. The surety settles claims to the obligee on behalf of the principal, but the principal must pay that amount back, plus interest and fees.

How much does a Montana Medical Marijuana Bond cost?

Expect the cost to be a small percentage of the surety bond value, meaning the maximum amount the surety agency agrees to pay to settle claims. What percentage a bond seeker pays depends on their credit score and financial history. Bad credit leads to higher bond costs. But it doesn't have to mean being denied a bond - not when you work with the team at Viking Bond Service.

How to apply for a Montana Marijuana Surety Bond?

Get a quote for whatever surety bond your business requires in as little as 24 hours by applying with Viking Bond Service. You will need to complete a standard bond application, submit a financial statement, agree to a credit check, and turn over any other documents the underwriters need to create your quote.

Viking Bond Service for Montana Marijuana Bonds

Your bond partner should be efficient, affordable, and focused on service - all terms that describe Viking Bond Service! If you have questions about any part of the bonding process, rely on our team for free information. Submit your questions through the form on this page or call us at 1-888-278-7389. If you have enough information already, complete our online bond application at your own convenience.