(1) A surety bond, or bond equivalent may be in bond increments rounded up to the nearest $2,000.00.
(2) The surety bond shall be on a form prescribed by the department.
(3) Such surety bond shall name the state of Montana as obligee for the benefit of all parties.
(4) A surety bond required by 80-4-504 and 80-4-601, MCA, shall be effective on the date of commencement, shall not be affected by the expiration of the license period, and shall continue in full force and effect until cancelled. The continuous nature of a surety bond, however, shall in no event be construed to allow the liability of the surety under a surety bond to accumulate for each successive license period during which the surety bond is in force, but shall be limited in the aggregate to the amount stated on the bond or as changed, from time to time, by appropriate endorsement or rider.
(5) The principal or the surety on a bond may cancel a bond by written notice of intent to cancel, by registered or certified mail, with return receipt, to the other party and to the department. Such written notice shall be received at least 60 days prior to the cancellation date specified on the notice.
(6) Not later than 45 days after a notice of intent to cancel as described in (5) of this section is received by a public warehouseman, the licensee shall file with the director a new bond or bond equivalent which must become effective and be in full force and effect on and after the date upon which his existing bond is to be cancelled.