Section 11. Upon the expiration and return, or surrender before expiration, of each state license, the deputy director shall cancel the same, endorse the date of return or surrender thereon, and place the same on file. If a license is lost he may accept in lieu of the return or surrender thereof an affidavit to that effect, which shall be so endorsed and filed. He shall hold the special deposit of the licensee for sixty days after the return or surrender of the license or the filing of such affidavit and, after satisfying or making provision in accordance with the following section for all claims made upon the same under said section, shall return the surplus, if any, to said licensee; or, if said licensee has given a bond in lieu of said deposit, the deputy director shall, after said sixty days and after all claims made under the following section have been satisfied or settled, cancel said bond and notify said licensee and the surety on said bond.