(a) 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 any license or permit or the exercise of any special privilege, the surety on such bond shall be a corporation licensed and authorized to do business in the state of Illinois as a surety company, in the absence of specific provision to the contrary by this code or by ordinance.
(b) Whenever in its opinion additional sureties or an additional surety may be needed on any bond to indemnify the village against any loss or liability because of the insolvency of the existing surety or sureties or for any other reason, the board of trustees may order a new surety or sureties to be secured for such bond. If such new surety or sureties are not procured within ten (10) days from the time such order is transmitted to the principal on the bond, or his assignee, the board shall declare the bond to be void, and thereupon such principal or his assignee, shall be deemed to have surrendered such privilege, or position as a condition for which the bond was required. (1963 Code §§ 10.605, 10.606)