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Nevada Marijuana Surety Bonds
What is a Nevada Marijuana Bond?
A Nevada Marijuana Bond is a surety bond that is required to be posted by marijuana businesses in some municipalities (city, county, township, etc.) in the State of Nevada. The bond must be posted before the business is licensed to engage in any marijuana related activities. These business activities include the operation of cultivation facilities, testing facilities, and product manufacturing facilities.
The State of Nevada does not require marijuana businesses to post surety bonds at the state level. The bonds are only required at the local level. Nevada allows local city and county governments to pass their own laws and ordinances concerning marijuana businesses, as long as they also comply with the State’s rules and regulations. Therefore, some municipalities have created ordinances in addition to the state’s. Below, to the best of our knowledge, are the municipalities that have passed ordinances requiring marijuana businesses to post a surety bond:
City of Las Vegas Medical Marijuana Establishment Surety Bond - $250,000
City of Las Vegas Medical Marijuana Establishment License Bond - $50,000
City of North Las Vegas Medical Marijuana Establishment Surety Bond - $250,000
City of North Las Vegas Medical Marijuana Establishment License Bond - $50,000
If you need a Nevada Marijuana Surety Bond but don’t see it above, please give us a call on our toll free number, 1-800-480-3883. Legislation is always changing, so we may not have had the chance to update our website yet. Regardless if it is listed or not, we can write your bond!
Due to the risk from the perspective of the bonding company, Marijuana Surety Bonds are very carefully underwritten and priced accordingly. Part of the cost of this bond will be the time and effort needed to provide the documentation and information the bonding company will need. In all cases, personal credit, personal financials, and corporate financials will be required. In most cases, a business plan will also be required. Of course, we can typically handle all credit types and financial situations — from excellent to poor — as such those terms vary.
Nevada Marijuana Surety Bonds and Las Vegas Marijuana Surety Bonds can be written for a small percentage, usually between 1% and 5% of the bond amount when applicants meet certain underwriting criteria such as excellent credit, excellent personal and business financials, and excellent industry experience.
The ProSure Group has a handful of markets willing and able to write marijuana/cannabis surety bonds!
Marijuana Surety Bonds are in place for a number of reasons. Some of the bonds are used to ensure the Principal pays taxes, while other bonds are used to ensure the Principal faithfully performs all obligations in connection with their marijuana business license. Each municipality has different regulations and ordinances, therefore, each uses a surety bond to guarantee something different.
The Las Vegas Medical Marijuana Surety Bond and the North Las Vegas Medical Marijuana Surety Bond are in place to ensure the Principal (Medical Marijuana Establishment) indemnifies, defends, and holds harmless the Obligee (City) from any loss as a result of claims and/or litigation that may arise out of the use of the Marijuana Establishment License.
Additionally, the North Las Vegas and Las Vegas surety bonds ensure the Principal complies with the ordinances and license obligations established by the City.
Most marijuana surety bonds are required at the state level. However, the State of Nevada does not have a surety bond requirement. So instead, if a bond is required for a marijuana business in Nevada, then it is being required by a local municipality. Nevada has allowed local governments to govern marijuana businesses as they see fit, as long as they don’t conflict with state laws. Currently, only the cities of Las Vegas and North Las Vegas require marijuana businesses to post a surety bond.
Las Vegas Municipal Code 6.95.090(G) - Medical marijuana establishment-Licenses, requires a $250,000 surety bond to be posted prior to the issuance or renewal of a license. The ordinance requires medical marijuana cultivation facilities, independent testing laboratories, and medical marijuana production facilities to provide a surety bond. The Obligee on the surety bond is the City of Las Vegas. You, the marijuana establishment, are the Principal on the bond.
North Las Vegas Municipal Code 5.29.070(I) Medical Marijuana Establishment - Licenses, requires a $250,000 surety bond to be posted prior to the issuance or renewal of a license. The ordinance requires all medical marijuana establishment licensees to provide a surety bond. The Obligee on the surety bond is the City of North Las Vegas. You, the marijuana establishment, are the Principal on the bond.
North Las Vegas Municipal Code 5.29.070(J), stipulates that medical marijuana establishment licensees must also provide a $50,000 surety bond. This second bond ensures the City will be paid for all license fees and penalties owing against the license.
All marijuana/cannabis bonds are different. Some bonds renew on an annual basis and others renew biennially. There are even some bonds that are only required to be in force until the Principal meets certain obligations. Additionally, some Obligees will allow for the bond amount to be lowered as the Principals meet certain benchmarks. Your bond agent should know these requirements. That information is also stated directly on the bond form.
Las Vegas Medical Marijuana Establishment Surety Bonds remain in full force and effect from the effective date until cancelled. The bonding company will bill for the bond on an annual basis. The surety bond may be canceled by the surety company with thirty (30) days written notice from the Surety to the Obligee (City of Las Vegas).
North Las Vegas Medical Marijuana Establishment Surety Bonds remain in full force and effect from the effective date until cancelled. The bonding company will bill for the bond on an annual basis. The surety bond may be canceled by the surety company with thirty (30) days written notice from the Surety to the Obligee (City of North Las Vegas).
Contact The ProSure Group! As surety bond experts in business since 1993, The ProSure Group has experience handling bonds of this type and has partnerships with more than 30 different surety companies, most of which are A.M. Best Rated and Treasury Listed. This ensures that we get you the best, most competitive pricing and terms available in the marketplace. You just need to complete our simple application and one of our specialists will quickly contact you.