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 Cigarette and Tobacco Tax Credit Bond holds you accountable for your business decisions.
By possessing a Tennessee Cigarette and 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.