(2) The surety on each bond shall be a corporate surety licensed to do business as a surety within the State of Oregon.

(3) The surety shall not cancel the bond until 60 days after its written notice of such cancellation is received by the department, which notice shall be sent to the department and to the principal by registered or certified mail.

(4) The amount of the bond, after public hearing under ORS chapter 183, shall be determined by reference by the department to a schedule which it shall establish. Such schedule which may vary depending on the type of livestock auction market operation, the estimated or actual volume of sales or other standards which the department deems necessary, in so far as is reasonable and practicable, shall conform to the bonding law and rules of the federal Packers and Stockyards Act prescribed in subsection (5) of this section. The department in addition may require before it gives its approval to a bond or renewal thereof that the applicant submit a financial statement or other information to assist the department in determining the necessary size or type of bond which may be necessary for the protection of persons who may be covered or affected thereby.

(5) Any livestock auction market licensee or applicant for license who presents to the department satisfactory evidence of compliance with the bonding provisions of the federal Packers and Stockyards Act of 1921, 7 U.S.C. 181 to 228, as amended, and effective June 29, 1971, shall be deemed in compliance with the bonding requirements of this section during such time as the licensee or applicant complies with the bonding provisions of such federal statute. If a federal bond which has been deemed to be in compliance with the provisions of this section is canceled or terminated, the licensee shall immediately stop all operations of such market until another state or federal bond has been obtained by the licensee and approved by the appropriate agency, as required by law. Until another such bond has been obtained, the license of the market operator shall be deemed suspended and shall be surrendered to the department.

(6) If two or more persons have claims, either fixed or contingent, against a licensee’s bond maintained pursuant to subsection (1) of this section, they shall, subject to the provisions of ORS 599.251, share pro rata in the proceeds of the bond to the extent of their actual damages except that the claims of the State of Oregon and the department referred to in subsection (1)(a) of this section shall have priority over, and shall be paid to the department prior to, all other claims or creditors. [1953 c.677 §6; 1957 c.390 §2; 1959 c.596 §70; 1959 c.685 §31; 1961 c.283 §1; 1963 c.15 §1; 1967 c.368 §4; 1971 c.578 §12]