Those who require a license to Distribute or Sell Cigarettes and/or Tobacco Products operating in the State of Iowa are required under Iowa Code Chapter 453A to execute an Iowa Cigarette / Tobacco Surety Bond to ensure compliance with licensure.
A surety bond protects the party requesting the bond, the Obligee, against any financial losses as a result of poor financial decisions, damages, unethical decisions, or a failure to follow state and local laws on the part of you, the Principal. The Iowa Cigarette / Tobacco Surety Bond holds you accountable for your business decisions.
By possessing an Iowa Cigarette / Tobacco Surety Bond, you are telling your Obligee that you can be trusted as a Principal and that you stand behind your business decisions.