Legal: Bank accounts

I am hearing from some of the dispensories in Redding that they rec'd letters from their banks informing them that their bank accounts are being closed. The letters cite a notification that they rec'd from FDIC stating that marijuana is a controlled substance according to federal law and that their FDIC charter prohibits them from making money from doing business with an individual or company that has income by violating federal law.

How about THAT?

My lawyer says that will make complying with IRS rules re: nonprofit organizations very difficult. I say that it will make doing business very cumbersome and time consuming.


Thoughts? Comments?

sounds like more cash!! there weeding out the weak!! B of A did it to umm, my associates!!

Yes, weeding out the weak - and making it more like an illegal activity. Cash = trouble with IRS. How do you pay your utility bill? Insurance? Employees? Taxes? With cash?

Why do I feel like we're being herded into a box canyon?

I think this is a unsubstantiated rumor. I live near Redding and I have not heard anything about this. I do not buy from dispensaries. However, getting cash for co-op purchases (of product) sounds counter-intuitive. I dunno, though. Any experience, anyone?

So I call Bullshit, OhNoYaDont. You need to offer more evidence than, "I am hearing...". I want a quote from a local dispensary owner, at least.

Make ya a deal ...

You tell us YOUR name and address, and I'll tell you the name and address of the co-op owner that told me that his bank wrote him a letter and closed his account.

Deal?

I clearly indicated in the OP that this was a rumor. If nobody else has heard about it - it is probably bunk. I was asking for info.

ok, first things first, the legality of what Ohnoyadont said is true. technically and legally, it really is true. HOWEVER, banks closing accounts because your income is from a "Controlled Substance" is BS. They can't do it unless they can prove it in black and white. and they are required to notify you at least 5 business days before the closing of your account. The friend of yours that this happened to may have just had someone at the bank pissed off at them. or someone that was pissed at them may have had influence on the bank employees and had something done. both are very realistic, and more likely than what he's been told, or at least told you he's been told, happened. not bashing anything you've said, im just callin em like i see em.

"In October of 2009, upon Nature's Nexus' inception, the board opened a bank account at Butte Community Bank with full disclosure of our type of entity. In the fall of 2010 Butte Community Bank was taken over by Rabobank. At that time we inquired if there would be any changes that would affect our account. We were assured that there would be no major changes.

Despite the perfect standing that the Nature's Nexus bank account held for the full 16 months at Rabobank, we were contacted on January 21, 2010 (sic, I'm sure they must mean 2011) at 1pm and told that effective February 1, 2010 (6 business days later) that our account would be closed. Not having a bank account posed numerous operating concerns, especially our ability to accept credit/debit cards. After searching through every local bank in Shasta, Trinity and Humboldt counties, the Nature's Nexus board finally located River City Bank in Sacramento, CA who would accept our account. We are now happily (but not conveniently!) banking in Sacramento." http://nnredding.files.wordpress.com...ter-feb-11.pdf

WOW, thats one way they can get at us:wtf: WTF.

Is this true? Sounds pretty good but is it true?

Hearded is just the begining. What happend to our country? And our state for that matter?

they did this to us here in Colorado. People opened up new accounts with normal names like, Bobs Car Repair.

i have this thing with burieying money. i think we should have the same kind of bank for this new green money. Growers stash of america. the growing isnt gonna stop, they know that. they are just tring to do all the paper work and then make it so they make all the money from it. then it will go fully legal

Any up dates to tell us. Thanks ;)