(a) Requirements for bond.--The township treasurer shall, before entering upon the duties of office, give a fidelity bond to the township in an amount established by ordinance or resolution and at least equal to 50% of the amount of township funds estimated by the board of commissioners to be available to the township treasurer at any time during the current year. The bond shall be provided by a surety company or companies duly authorized to do business in this Commonwealth. The bond given by the treasurer shall be conditioned on the faithful performance of the duties as stated in section 2303 (relating to treasurer's duties). The treasurer may not be required to give bond or bonds aggregating an amount in excess of the taxes to be paid over to the treasurer by the tax collector. The bonding requirements of this section shall also apply to the deputy treasurer.
(b) Insurance in lieu of bond.--In lieu of the bond required for the faithful performance by the township treasurer or deputy treasurer of official duties other than those of tax collector, the board of commissioners may purchase insurance under section 1902(b) (relating to bonds).