(a) Before assuming the duties of office, each director must execute a bond payable to the district or purchase an appropriate insurance policy that names the district as its sole beneficiary, conditioned on the faithful performance of the director's duties.
(b) For each director, the board shall determine the appropriate type and value of the bond or insurance policy.
(c) The board may pay for a director's bond or pay for a director's insurance policy and premiums with district money.
(d) Each director's bond or insurance policy shall be kept in the district's permanent records.