(1) A milk dealer or handler purchasing or acquiring or receiving or intending to purchase or receive milk from producers, but not so engaged during the preceding 12 months, shall file a bond in a sum to be fixed by the board in accordance with the handler's anticipated purchases from producers and the handler's obligation to a producer settlement or equalization fund, but not less than the total amount expected to be owed during the full 40-day pay period.

(2) The board shall review the operations of the milk dealer or handler every two months and the bond shall be modified by the board at the time the board is satisfied that the producers are adequately secured.

(3) At the end of six months of operation, upon approval by the board, the milk dealer or handler shall file a bond in a sum equal to a minimum of 75% of the highest aggregate amount owed or expected to be owed by the milk dealer or handler to all producers for a 40-day period.