When for a period of five days after the date required for payment of any amount due any of his or her producers, the handler fails to pay the amount due for products delivered or furnished by them for the preceding pay period, the handler, by reason of such nonpayment, shall be in default as to all producers whose accounts shall then remain unpaid, and the bond or other security provided for in section 2881 of this title shall be forfeited to the extent of all sums then due from such handler to its several producers in this State and, by virtue of such default, the conditions of the bond or other securities shall be deemed to be broken. (1965, No. 175, § 22.)