(a) Requirements.-- Except as provided for in subsection (b), if an officer or employee of a township is required by law or action of the board of commissioners to give bond for the faithful performance of the officer's or employee's duties, the bond must be with a surety company or other company authorized by law to act as surety. The township shall pay the premium on the bond, except that the premium on the bond of the township tax collector shall be paid by the respective taxing districts, as provided under the act of May 25, 1945 (P.L.1050, No.394), known as the Local Tax Collection Law. (b) Insurance.-- If an officer or employee of a township, except for a tax collector, is required to give a bond for the faithful performance of the officer's or employee's duties, the board of commissioners may purchase insurance in lieu of a bond if the insurance covers the same events of loss and insures the township against the same misconduct as the bond.
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