Whenever a surety bond to indemnify the City 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 this State as a surety company. Whenever, in its opinion, additional surety may be needed on any bond to indemnify the City against any loss or liability because of the insolvency of the existing surety or sureties or for any other reason, the City Council 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 its assignee, the City Council 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. All premiums charged by such surety company on any and every bond for officers or employees of the City shall be paid directly by the City out of the monies from its general funds and not in any case by the individual officer or employee so furnishing such bond. (1976 Code § 2-1-6)