Before a license under this chapter shall be issued, each principal shall post a bond, by a surety company authorized to engage in the business of insuring the fidelity of others in Iowa, in the amount of $1,000.00 with the clerk to the effect that the registrant and the surety shall consent to the forfeiture of the principal sum of the bond or such part thereof as may be necessary: (a) to indemnify the town for any penalties or costs occasioned by the enforcement of this section and (b) to make payment of any judgment rendered against the registrant as a result of a claim or litigation arising out of or in connection with such registrant’s peddling or solicitation. Said bond shall not be retired until after a lapse of one year from the expiration of the license which it covers. [Code 1975 § 7-1.0107.]