(1) Every applicant for a mortgage lender license shall file with the department a bond as specified in (3) during the period of licensure. Each surety bond shall be subject to the filing of a claim for acts during the term of the license and for five years after the expiration of the license.

(2) In no less than five years after a person ceases to be licensed as a mortgage lender, the writer of the surety bond may apply to the commissioner on forms approved by the department for release of the surety bond. Unless the commissioner determines that claims are pending against the person for violation of the Montana Residential Mortgage Lender Licensing Act, the commissioner shall release the surety bond.

(3) A surety bond shall be in a form and on terms approved by the commissioner in the minimum sum of $50,000 for each principal office and $5,000 for each branch office authorized to do business in this state. The surety bond shall be renewed or replaced annually.