(A) Whenever a bond is required as a prerequisite to holding any village office, or to securing any license or permit or enjoying any special privilege, such bond shall have as surety a corporation licensed to do business in the state as an insurance surety company in the absence of provision to the contrary by ordinance, but the Village President and Board of Trustees may waive this provision and accept other bonds, provided that where such bond is required in connection with the use of real estate in the village the individual bond of the owner thereof shall be sufficient if his interest in the building is equal in amount to the amount of the bond required.
(B) Whenever any bond shall become insecure for any reason the Board of Trustees may order a new bond to be filed or an additional surety to be procured. A failure to file such new bond or procure such additional surety shall operate to discontinue the office, permit, license or privilege to the enjoyment of which filing the bond was a prerequisite.
('70 Code, § 1.24.7)