The license or nonresident's operating privilege suspended as provided in section 39 -16-05 must remain so suspended and may not be renewed nor may any such license be issued to such person until: 1. Such person deposits or there is deposited on the person's behalf the security required under section 39-16-05; 2. One year has elapsed following the date of such accident and no evidence satisfactory to the director has been filed with the director that during such period an action for damages arising out of such accident has been instituted; or 3. Evidence satisfactory to the director has been filed with the director of a release from liability, or a final adjudication of nonliability, or a confession of judgment, or a duly acknowledged written agreement, in accordance with subsection 3 of section 39-16-06; provided, in the event there is any default in the payment of any installment under any confession of judgment, then upon notice of such default, the director shall forthwith suspend the license or nonresident's operating privilege of such persons defaulting which may not be restored unless and until the entire amount provided for in said confession of judgment has been paid; and provided further, that in the event there is any default on the payment of any installment under any duly acknowledged written agreement, then, upon notice of such default, the director shall forthwith suspend the license or nonresident's operating privilege of such person defaulting which may not be restored unless and until such person deposits and thereafter maintains security as required under section 39 -16-05 in such amount as the director may then determine, or one year has elapsed following the date when such security was required and during such period no action upon such agreement has been instituted in a court in this state.
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