(a) The State Board of Collection Agencies shall require each licensee to secure a surety bond in an amount not less than ten thousand dollars ($10,000) nor more than fifty thousand dollars ($50,000) for each location, with the security on the bond to be approved by the board.
(b) The aggregate liability of the surety for all breaches of the conditions of the bond shall, in no event, exceed the amount of the bond. The surety shall have a right to cancel such bond upon giving thirty (30) days' notice to the board and thereafter shall be relieved of liability for any breach of condition occurring after the effective date of the cancellation.
(c) The bond shall be made payable to the board.
(d) The board may promulgate rules to:
(1) Disburse bond funds to claimants;
(2) If the bond proceeds are insufficient to satisfy all legitimate claims, distribute the funds pro rata among the claimants; or
(3) In the discretion of the board, require the sureties to deal directly with the claimants.