Manufacturing distributors, wholesale dealers and jobbers of Cigarette and Tobacco products are required under the Tennessee Codes Annotated section 67-4-1006 to file a Tennessee Cigarette and Tobacco Tax Credit Bond as a condition of 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 Tennessee Tobacco Tax Credit Bond holds you accountable for your business decisions.
By possessing a Tennessee Tobacco Tax Credit Bond, you are telling your Obligee that you can be trusted as a Principal and that you stand behind your business decisions.