1. As a condition of licensure, the applicant shall post a bond with the agriculture commissioner. The bond must be:
a. A surety bond;
b. A cash bond; or c. An irrevocable letter of credit.
2. The agriculture commissioner must be named as the obligee.
3. The bond required by this section must be:
a. In an amount and form required by this chapter;
b. Applicable to the period during which the livestock dealer's license is in effect;
c. For the benefit of any person selling livestock to the livestock dealer or the dealer's agent; and d. Conditioned for the payment of any financial obligation owed by a livestock dealer to another person in conjunction with the sale of livestock.