Before entering upon the duties of the office, the Village Manager shall execute a bond in a sum as shall be determined from time to time by ordinance or resolution of the Board of Trustees, conditioned upon the faithful performance of his or her duties, and shall be conditioned to indemnify the village for any loss by reason of any neglect of duty or any act of the Village Manager. The bond shall be approved by the corporate authorities and filed with the Village Clerk. The premium of such bond shall be paid by the village.