--- source: https://cannabissuretybonds.com/states/new-york/ 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 --- # New York cannabis and marijuana surety bonds New York's medical program has accepted a $2,000,000 bond in place of real property documentation from registered organization applicants. - **Penal sum:** $2,000,000 (medical) - **Regulator:** New York State Office of Cannabis Management - **Underwriting:** Application plus financial statements ## What New York requires of cannabis and marijuana businesses New York's original medical marihuana program, created by the Compassionate Care Act, required an applicant for registration as a registered organization to document its real property or lease for every proposed manufacturing and dispensing site. The regulations offered an alternative: an applicant that could not yet produce that documentation could post a bond of $2,000,000. The medical program has since moved from the Department of Health to the Office of Cannabis Management (OCM), which also licenses the adult use market under the Marihuana Regulation and Taxation Act. The adult use regulations do not impose a general license bond, so for most New York operators the bonds that matter are contractual: performance bonds on facility build outs and financial guarantees requested by landlords or municipalities. **New York cannabis, marijuana and hemp bonds written by Surety One** | Bond | Penal sum | Who files it | Obligee | Authority | | New York Registered Organization Bond in Lieu of Lease Documentation | $2,000,000 | Registered organization applicants without site control documents | State of New York | Public Health Law art. 33, tit. V-A; former 10 NYCRR ยง 1004.5 | ## What the bond guarantees A bond in lieu frees capital. Instead of signing leases across the state before a registration is awarded, the applicant posts the bond and secures sites afterward. It is a seven figure financial guarantee and is underwritten on audited or CPA reviewed statements with owner indemnity. 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 New York 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 New York bond On a New York bond the principal is your licensed business, named exactly as it appears on the license or application. The obligee is State of New York. The surety is an insurance company admitted in New York, placed by Surety One, Inc. as producer and underwriting manager. Who files in New York: Registered organization applicants without site control documents ($2,000,000). ## Claims, cancellation and renewal in New York If State of New York 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 New York 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 cannabis license. We send renewal notices 45 days ahead, and renewing at least 30 days early removes the risk of a gap. ## Getting a New York bond issued, step by step - **Confirm the form and amount.** Ask New York State Office of Cannabis Management 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=new-york). 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 New York bond in good standing - File and pay every cannabis 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 New York 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 [New York State Office of Cannabis Management](https://cannabis.ny.gov/) before you file. A note on vocabulary: cannabis and marijuana are the same plant and, for bonding purposes, the same business. New York law uses the term "cannabis". Operators look for this bond as a New York marijuana bond, a New York marijuana license bond, a New York cannabis bond and a New York 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. - [New York Cannabis Law (New York State Senate, Open Legislation)](https://www.nysenate.gov/legislation/laws/CAN) - [Office of Cannabis Management](https://cannabis.ny.gov/) ## New York marijuana and cannabis bond questions **Q: Does New York require a bond for an adult use dispensary license?** We have not identified a general surety bond requirement in OCM's adult use licensing regulations. Confirm the current application checklist with OCM, because its rules have been revised repeatedly. **Q: Can you bond the construction of my New York facility?** Yes. Build out performance and payment bonds are contract surety, which Surety One also underwrites. Tell us about the project and the owner's requirements. **Q: Is a New York marijuana bond the same as a New York cannabis bond?** Yes. Marijuana bond, cannabis bond, marijuana license bond and cannabis surety bond are different names for the same instrument. New York law uses the term cannabis, 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 New York 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 New York bonds are rated individually. Quotes are free. **Q: Can I get a New York cannabis 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 New York 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)