Washington DC Marijuana Bond
As a marijuana business operating in or around Washington DC, you may need a special type of surety bond known as a marijuana bond. Use this guide to understand the basics and simplify the important bonding process.
What is a Washington DC Marijuana Bond?
Surety bonds like this one hold the bonded party - in this case the marijuana business - accountable if it violates Washington DC laws related to the cultivation, distribution, or sale of marijuana. When that happens, marijuana bonds give any injured party a way to seek damages in the form of financial compensation. They also make the bonded party legally responsible to pay for those damages.
How does a DC Medical Marijuana Bond Work?
If a Washington DC business involved in the marijuana industry violated one of the many laws governing its conduct, any party who was wronged by that action (whether it be an individual or a local regulatory agency) may file a claim against the surety bond seeking damages. Provided that the claim holds up under investigation, the surety agency that issues the Washington DC marijuana bond automatically settles the claim in full. The final step in the claim process is when the bonded party (the marijuana business) pays the surety agency back the amount of the claim plus interest and fees. Under the surety bond agreement, the surety agency guarantees payment but does not accept the final financial responsibility for claims. Responsibility always rests on the bonded party.
Who needs a Washington DC Marijuana Bond?
The regulators responsible for the Washington DC marijuana industry will decide who needs a surety bond, under what conditions, and what amount the bond must be. Typically, getting a marijuana bond will be a prerequisite for being granted a business license. If you have any questions about whether your business needs to get a surety bond, reach out to Viking Bond Service for the answers.
Why is it necessary to have a Washington DC Marijuana Bond?
Without a surety bond, it's impossible to get a license or it can invalidate an active license. It's illegal to run a business without a license, and there are numerous penalties for doing so, meaning it's illegal to run a Washington DC marijuana business without the required bond. Regulators use surety bond requirements to discourage illegal and unethical behaviors - since a surety bond holds a business liable for unlawful behavior it creates a powerful reason to follow the law.
Who are the parties involved in a Washington DC Medical Marijuana Bond?
All surety bonds involve three equal parties:
- The principal is the bonded party and the party responsible for settling claims. In this instance, the marijuana business is the principal.
- The obligee is the party that requires the principal to get a surety bond and has the right to file claims against it.
- The surety is the party that issues the bond to the principal and settles claims to the obligee. Afterwards, the principal must pay the surety back the full amount of the claim.
How much does a Washington DC Marijuana Bond Cost?
The cost varies for every bond seeker. It depends, first, on the size of the bond, meaning the maximum dollar amount the surety agency that backs the bond agrees to pay to settle claims. Expect the surety bond cost to be a small percentage of the bond total. The exact amount will depend on the bond seekers credit, business strength, and financial history. If you have bad credit and worry you may be denied for a bond, work with Viking Bond Service.
How to apply for a DC Cannabis Surety Bond
You will need to supply several different documents: a completed bond application, a financial statement, and anything else the surety agency asks for. You will also need to submit to a credit check. Viking Bond Service makes the surety bond application process so easy and efficient you can expect to get a quote within 24 hours!
Viking Bond Service for Washington DC Marijuana Bonds
Don't let the surety bonding process be an obstacle for your business. Rely on Viking Bond Service instead. If you're ready to get a marijuana bond asap, complete our online application at your convenience. If you would like to ask questions and get more information first, call us at 1-888-278-7389 or submit your queries through the form on this page.
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