North Dakota Medical Marijuana Surety Bond
What is a medical marijuana bond in North Dakota?
A North Dakota medical marijuana bond is a surety bond that marijuana dispensaries registered as “compassion centers” must post to operate legally in the state. A compassion center can be a marijuana dispensary or manufacturing facility. You may not process, produce, or dispense usable marijuana or act as a compassion center in North Dakota unless registered.
- Manufacturing facility: May produce, process, acquire, store, possess, transfer, and transport marijuana to sell usable marijuana to dispensaries
- Dispensary: May purchase usable marijuana from manufacturing facilities and dispense it directly to registered qualifying patients or their designated caregivers
If the dispensary is able and willing to meet the requirements outlined in the North Dakota Medical Marijuana Law, it may be approved as a compassion center. The surety bond ensures “the protection of the health and safety and the environment in the event of abandonment, default, or other inability or unwillingness to meet the requirements” according to Section 19-24.1-15.
Get Your North Dakota Marijuana Bond:
Quick Takeaways
- A North Dakota medical marijuana bond is a surety bond that marijuana dispensaries registered as “compassion centers” must post to operate legally in the state.
- The North Dakota Department of Health must approve a dispensary’s application to be registered as a compassion center.
- The NDDOH will determine the required bond amount you must post to receive your compassion center registration, but it won’t exceed $100,000.
North Dakota Medical Marijuana Surety Bond Requirements
The North Dakota Department of Health (NDDH) must approve a dispensary’s application to be registered as a compassion center.
If your business wishes to become registered as a compassion center (manufacturing facility or dispensary), you will need a surety bond. The NDDOH will determine the required bond amount you must post to receive your compassion center registration. It won’t exceed $100,000.
How does an ND medical marijuana bond work?
A medical marijuana bond is a three-party agreement between a principal, obligee, and surety.
- Principal: The marijuana compassion center responsible for fulfilling the duties required by the obligee
- Obligee: The North Dakota Department of Health
- Surety: The financial company that issues the bond and ensures the principal complies with the bond terms
If the principal fails to perform its duties accordingly, the obligee may file a claim against their bond for compensation. The surety may pay for the damages up front, but the principal must repay them in full.
Frequently Asked Questions
How much do North Dakota medical marijuana bonds cost?
The cost of your bond can vary based on your credit score and financial standing. The NDDOH will determine your rate.
Marijuana bonds can be written for as low as 1% of the total bond amount. For example, if you have excellent credit and need a $100,000 bond in North Dakota, you may pay as little as $1,000 per year.
How to Get Your ND Medical Marijuana Bond
Here is the basic process for obtaining a medical marijuana bond in North Dakota.
- Determine if you’re eligible to register as a compassion center in the state.
- Apply for your bond on our website.
- Fulfill the requirements using our secure online process.
- Sign the agreement.
- Pay for and print your bond.
Get a North Dakota Medical Marijuana Bond
ZipBonds is certified to provide North Dakota marijuana surety bonds. Start the application process by clicking the button below. We offer the fastest and most secure option for getting bonded. Our all-digital platform is intuitive and straightforward. If you have any questions along the way, call 888-435-4191 to speak with an agent directly.
About ZipBonds.com
Founders Ryan Swalve and Zach Mefferd formed the vision for ZipBonds.com when they realized how overly complicated it was to help clients place surety. The frustration of being unable to incorporate the technology they’d used in other insurance-focused projects left them thinking “there has to be a better way.”
Fast forward a couple of years, and that better way is the impetus of everything we do at ZipBonds. We constantly look for innovative ways to improve the bonding process for our clients and agents. Our team comprises individuals who understand all angles of surety – for companies, agencies, and individuals. Incorporating everyone’s point of view to improve the process while simultaneously integrating cutting-edge technology is what sets our business apart.