Pubdate: Thu, 12 Jun 2014
Source: Las Vegas Sun (NV)
Copyright: 2014 Las Vegas Sun, Inc
Contact:  http://www.lasvegassun.com/
Details: http://www.mapinc.org/media/234
Author: Eli Segall
Page: 1

BANKING ON THE FUTURE

Financial Institution Eager to Do Business With Would-Be Marijuana Dispensary

If finance executives are worried about getting involved with medical 
marijuana clients, don't tell Las Vegas banker John Sullivan.

First Security Bank of Nevada, led by CEO Sullivan, has signed on to 
manage cash and other banking transactions for would be dispensary 
operator GrowBlox Sciences.

GrowBlox, which said it "operates with the utmost compliance 
integrity," said its arrangement with First Security would eliminate 
the "cash-only" status of medical marijuana shops that have left them 
vulnerable to devastating theft.

The company announced Wednesday that it obtained a letter of intent 
from the bank.

"It allows us to fill an integral link that is missing in this 
industry," GrowBlox Chief Financial Officer Steven Weldon said in the 
news release.

Clark County commissioners on Friday gave a group that includes 
GrowBlox a special-use permit for its proposed dispensary, which will 
apparently be located on Fort Apache Road just north of Tropicana Avenue.

The group, GB Sciences Nevada, still needs state approval before 
opening but was one of 18 applicants to receive a county dispensary 
permit for locations around Southern Nevada.

Although 22 states and the District of Columbia have legalized 
marijuana use - almost solely for medical purposes - bankers have 
shied from lending to marijuana related companies or accepting their 
deposits. That's because using marijuana still violates federal 
law,although the Department of Justice has backed off.

Last August, the agency said it told the governors of Colorado and 
Washington - the only states that have legalized recreational 
marijuana use - that the federal government is "deferring its right 
to challenge their legalization laws at this time."

Sullivan recently told KNPR that he proposed to his board of 
directors that First Security sign medical marijuana operators as clients.

"Our willingness to work with the applicants who intend to get into 
the marijuana-related businesses arises from our attitude that we 
should serve all of the customers in our market," Sullivan told the 
radio station.
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MAP posted-by: Jay Bergstrom