1. As a condition of licensure, the seed commissioner shall require an applicant to file:
a. A cash bond or a surety bond, in an amount and form determined by the seed commissioner; or b. An irrevocable letter of credit.
2. The security required by the seed commissioner under subsection 1 is for the benefit of potato producers in this state and must be conditioned for the payment of any financial obligation owed by a wholesale potato dealer to a potato producer in this state.