§ 3-306 Official undertakings. The board of trustees on behalf of the
village or the board in control of a village owned utility plant shall
post an official undertaking in such sum and form, and with such
sureties as the board of trustees or the board in control of the village
owned utility plant shall direct and approve for the treasurer, clerk,
village justice, acting village justice, and such other officers and
employees as may be required by the board of trustees, or by the board
in control of a village owned utility plant. The board of trustees may
by resolution determine that such undertaking shall be executed by a
surety company authorized to transact business in this state and that
the expense thereof shall be a charge upon the village. The board in
control of a village owned utility plant may by resolution determine
that such undertaking shall be executed by a surety company authorized
to transact business in this state and that the expense thereof shall be
paid from the proceeds of the operation of such utility plant.