(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 provisions to the contrary by ordinance, provided that where such bond is required in connection with the use of real estate in the vil lage the individual bond of the owner thereof shall be sufficient if the owner's interest in the building is equal 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 prerequisite.
('79 Code, § 1002(19))