(a) Before assuming the duties of the office, each director or officer, including a person designated under Section 363.101(c), must execute a bond for $5,000 payable to the district, conditioned on the faithful performance of the person's duties as director or officer.
(b) The bond shall be kept in the permanent records of the district.
(c) The board may pay for the bonds of the directors or officers with district funds.
(d) The board and the district may issue or sell bonds conditioned on the faithful performance of a person's duties as a director as provided by this section.