(A) Bond may be required. Every officer, employee and agent shall, if required by the Board of Trustees, upon entering upon the duties of his or her office, give a bond in such amount and with such sureties as may be determined by the Board of Trustees, conditioned upon the faithful performance of the duties of his or her office or position.
(B) Type of corporate surety bond when required. Whenever a surety bond to indemnify the village is required as a prerequisite to exercising the duties of any office or position or to the issuance of a license or permit or for the exercise of any special privilege, the surety on such bond shall be a corporation licensed and authorized to do business in the state as a surety company, in the absence of specific provision to the contrary by ordinance.
(C) Securing additional surety on bond to indemnify village. Whenever in the opinion of the Board of Trustees additional surety may be needed on any bond to indemnify the village against loss or liability because of the insolvency of the existing surety or for any other reason, the Board of Trustees may order a new surety to be secured for such bond. If such new surety is not procured within ten days from the time such order is transmitted to the principal on the bond, or his or her assignee, the Board of Trustees shall declare the bond to be void, and thereupon such principal or assignee, shall be deemed to have surrendered the privilege or position as condition of which the bond was required.
(`95 Code, § 31.03)