(a) Bond requirement.--The township manager shall, if required by the board of commissioners, provide a bond to the township. The township manager shall provide a bond under this subsection with a surety company or other company authorized by the laws of this Commonwealth to act as surety and approved by the board of commissioners. The board of commissioners shall, by ordinance or resolution, provide for the sum of a bond under this subsection conditioned for the faithful performance of the township manager's duties.
(b) Insurance in lieu of bond.--In lieu of the bond required for the faithful performance by the township manager of official duties, the board of commissioners may purchase insurance as provided in section 1902(b) (relating to bonds).