§ 107. Claims against political subdivisions; contractor's
undertaking. A contractor under a contract heretofore or hereafter made
or awarded by any political subdivision, or by any officer, board or
agency thereof, or of any district therein, in case any claim or notice
of claim for injury or damage to person or property arising out of or in
connection with the performance of such contract, be made against or
filed with such municipality or district therein, may file with the
fiscal officer of such political subdivision or district therein an
undertaking as prescribed in this section, and thereupon such fiscal
officer shall be authorized to make payments to such contractor pursuant
to the terms of such contract. Such undertaking shall be executed with
such sureties, in such form and for such amount as the fiscal officer of
such political subdivision or district therein may prescribe, and shall
be conditioned for the payment by such contractor of any judgment which
may be recovered in an action brought upon such claim.