---
source: https://cannabissuretybonds.com/states/michigan/
site: Cannabis Surety Bonds, a Surety One, Inc. platform
author: C. Constantin Poindexter, MA, JD, CPCU, AFSB, ASLI, ARe, AINS, AIS, CPLP, CICS
last_reviewed: 2026-09-21
---

# Michigan cannabis and marijuana surety bonds

Michigan has no state license bond, but municipalities may require one. The City of Adrian conditions its medical marihuana facility permit on a $100,000 bond.

- **Penal sum:** $100,000 in Adrian

- **Regulator:** Michigan Cannabis Regulatory Agency

- **Underwriting:** Application plus financial statements

## What Michigan requires of cannabis and marijuana businesses

Michigan statutes spell the word with an h, and so do we on this page. The Cannabis Regulatory Agency licenses growers, processors, provisioning centers and retailers, safety compliance facilities and secure transporters under the Medical Marihuana Facilities Licensing Act (MCL 333.27101 et seq.) and the Michigan Regulation and Taxation of Marihuana Act. The state relies on insurance and capitalization requirements, not a surety bond.

Both statutes leave substantial authority to municipalities, and a municipality that opts in may attach its own conditions. The City of Adrian is the leading example. Its Ordinance 18-009 requires every medical marihuana facility permit applicant to file a surety bond of $100,000.

**Michigan cannabis, marijuana and hemp bonds written by Surety One**

| Bond | Penal sum | Who files it | Obligee | Authority |
| City of Adrian Commercial Medical Marihuana Facility Bond | $100,000 | Provisioning centers, growers, processors, safety compliance facilities and secure transporters in Adrian | City of Adrian | City of Adrian Ordinance 18-009 |

## What the bond guarantees

The Adrian bond is a hybrid permit bond. It guarantees performance of the terms, conditions and obligations of the ordinance, which fall into two groups: the conduct of the permit holder and the operational requirements of the facility. Other Michigan municipalities have adopted similar language, so ask your clerk's office for the permit checklist before you apply.

Like every surety bond, this is a three party agreement and it is not insurance for the operator. If the surety pays a valid claim to the obligee, the principal must reimburse the surety under the general indemnity agreement signed when the bond is issued. [Read how the different cannabis bond obligations work.](https://cannabissuretybonds.com/bond-types/)

## How we underwrite Michigan cannabis and marijuana bonds

This obligation is larger than, or worded more heavily than, a simple compliance bond, so it is underwritten on financial disclosure: the application, a current personal financial statement from each owner holding ten percent or more, current business financial statements (CPA prepared for the largest bonds) and a copy of your complete state or local license application. A cannabis bond is in substance an unsecured credit instrument. The surety extends its credit to you in front of the regulator, so financial strength, operating experience and the exact wording of the bond form drive both the decision and the rate. Where the numbers are thin, partial collateral can close the gap. No applicant is automatically declined.

[More on cost, credit and collateral.](https://cannabissuretybonds.com/cost-and-underwriting/)

## The parties to a Michigan bond

On a Michigan bond the principal is your licensed business, named exactly as it appears on the license or application. The obligee is City of Adrian. The surety is an insurance company admitted in Michigan, placed by Surety One, Inc. as producer and underwriting manager. Who files in Michigan: Provisioning centers, growers, processors, safety compliance facilities and secure transporters in Adrian ($100,000).

## Claims, cancellation and renewal in Michigan

If City of Adrian believes the bonded obligation has been breached, it makes a written claim on the surety. The surety opens a file, asks for documentation and notifies you, and you have the opportunity to respond and to cure. A valid, unresolved claim is paid up to the penal sum, and the surety then recovers that payment and its expenses from the business and the individual indemnitors. Because the Michigan obligation is large or carries performance, decommissioning or supply language, a claim can reach the full penal sum, which is why the indemnity agreement deserves the same attention as a personal guarantee on a loan.

Most forms let the surety cancel on written notice to the obligee, commonly 30 to 90 days. If a replacement is not on file before the effective date, the regulator can suspend the marihuana license. We send renewal notices 45 days ahead, and renewing at least 30 days early removes the risk of a gap.

## Getting a Michigan bond issued, step by step

- **Confirm the form and amount.** Ask Michigan Cannabis Regulatory Agency for the current bond form and penal sum, or send us the license type and we will confirm them.

- **Apply.** Complete the [online application](https://cannabissuretybonds.com/apply/?state=michigan). It collects the business details and the name, home address and Social Security number of each owner for a soft inquiry credit report.

- **Send financial statements.** Personal financial statements from owners of ten percent or more, current business financials and your license application let us quote in about three to five business days.

- **Bind and file.** Pay the premium and sign the indemnity agreement. We deliver the executed bond to you and, where it accepts electronic filing, to the obligee. Wet signature originals go out overnight.

## Keeping a Michigan bond in good standing

- File and pay every marihuana tax and fee on time. Delinquent taxes are the most common trigger for claims.

- Keep seed to sale records reconciled to physical inventory, and document every destruction event with photographs, witnesses and waste manifests.

- Tell us before you change the business name, ownership, location or license type, so the bond can be amended by rider before the regulator notices a mismatch.

- Protect the personal credit of every indemnitor and keep quarterly financial statements. Both are reviewed at renewal.

Terms such as penal sum, obligee and indemnitor are defined in the [glossary](https://cannabissuretybonds.com/glossary/). Changes to Michigan and other state requirements are logged with dates in [regulatory updates](https://cannabissuretybonds.com/updates/), and an underwriter is available through the [contact page](https://cannabissuretybonds.com/contact/).

## What to send us

- [Cannabis license bond application](https://cannabissuretybonds.com/downloads/cannabis-license-bond-application.pdf)
- [Personal financial statement](https://suretyone.com/pdf/surety-personal-financial-statement.pdf) from each owner of ten percent or more
- Current business financial statements
- A copy of your complete license application

Send documents to [Cannabis@SuretyOne.com](mailto:Cannabis@SuretyOne.com) or [apply online](https://cannabissuretybonds.com/apply/). Confirm the current form and amount with the [Michigan Cannabis Regulatory Agency](https://www.michigan.gov/cra) before you file.

A note on vocabulary: cannabis and marijuana are the same plant and, for bonding purposes, the same business. Michigan law uses the term "marihuana". Operators look for this bond as a Michigan marijuana bond, a Michigan marijuana license bond, a Michigan cannabis bond and a Michigan cannabis surety bond. They are one instrument, and this site uses the words interchangeably. See [marijuana surety bonds](https://cannabissuretybonds.com/marijuana-surety-bonds/).

## Primary sources

Official texts behind this page. We link to citation based addresses on legislature, code and agency sites because those are the least likely to move.

- [MCL 333.27101 et seq., Medical Marihuana Facilities Licensing Act (Michigan Legislature)](http://legislature.mi.gov/doc.aspx?mcl-333-27101)
- [Michigan Cannabis Regulatory Agency](https://www.michigan.gov/cra)

## Michigan marijuana and cannabis bond questions

**Q: Does the State of Michigan require a marihuana bond?**

No. The Cannabis Regulatory Agency does not condition a state license on a surety bond. Bond requirements in Michigan come from municipal ordinances.

**Q: My township wants a bond on a form I have never seen. Can you write it?**

Usually, yes. Municipal forms are often drafted locally. Send us the ordinance and the form and an underwriter will review the language, which is the main driver of whether it can be written on application alone.

**Q: Is a Michigan marijuana bond the same as a Michigan cannabis bond?**

Yes. Marijuana bond, cannabis bond, marijuana license bond and cannabis surety bond are different names for the same instrument. Michigan law uses the term marihuana, operators search under all of these names, and the bond form and amount are the same whichever word you use.

**Q: How much does a Michigan cannabis or marijuana surety bond cost?**

You pay a premium, not the penal sum. The premium is a small fraction of the bond amount and depends on the size and wording of the obligation, your credit and your financial strength. Small compliance bonds carry low fixed annual premiums. Larger Michigan bonds are rated individually. Quotes are free.

**Q: Can I get a Michigan marihuana bond with bad credit?**

Yes in most cases. Surety One does not automatically decline any applicant. Files with damaged or limited credit go to our non-standard program, which carries a higher rate and sometimes partial collateral.

**Written and reviewed by [C. Constantin Poindexter](https://www.linkedin.com/in/constantinpoindexter/), MA, JD, CPCU, AFSB, ASLI, ARe, AINS, AIS, CPLP, CICS.** Founder of Surety One, Inc., Cannabis Insurance Coverage Specialist, attorney and surety underwriter for more than thirty years. Author of [The Contractor's Guide to Surety Bonds](https://constantinpoindexterauthor.com/). [View his cannabis insurance credentials.](https://cannabissuretybonds.com/about/) Last reviewed September 21, 2026.

## Need your Michigan cannabis or marijuana bond?

Application review and quoting are free, and there is no obligation to buy. Bonds of $25,000 or less are usually issued the same business day.

[Apply for a bond](https://cannabissuretybonds.com/apply/)[Talk to an underwriter: (919) 859-5294](tel:+19198595294)[Toll free (800) 373-2804](tel:+18003732804)