(1) Before any person is granted a license pursuant to Section 75-43-3, such person shall give a bond to the commissioner executed by the farm warehouseman as principal and by a corporate surety licensed to do business in this state as a surety, such bond to be approved by the commissioner of insurance. The bond shall be in favor of the commissioner for the benefit of all persons interested, their legal representatives, attorneys or assigns, conditioned upon the faithful compliance by the farm warehouseman with the provisions of this chapter and the rules and regulations of the state department of agriculture and commerce applicable thereto. The aggregate liability of the surety to all depositors or storers of grain shall not exceed the sum of such bond. The bond may be cancelled at any time by the surety by giving written notice to the commissioner of agriculture and commerce of its intention to cancel the bond, and all liability thereunder shall terminate thirty-five (35) days after the mailing of such notice, except that such notice shall not affect any claims arising under the bond, whether presented or not, before the effective date of the cancellation notice.

(2) In lieu of the bond required in subsection (1) of this section, an applicant for a license may be a self-insurer by posting with the commissioner cash, federal treasury bills, notes, securities or bonds, provided such notes, securities or bonds are secured by the federal government or the State of Mississippi in an amount equivalent to the bond as provided in Section 75-43-31.