(a) Except as provided for in subsection (b), when any officer or employe of any township is required by law or action of the board of commissioners to give bond for the faithful performance of the officer's or employe's duties, the bond shall 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 by the act of May 25, 1945 (P.L. 1050, No. 394), known as the "Local Tax Collection Law."(b) When any officer or employe of a township, other than a tax collector, is required to give a bond for the faithful performance of the officer's or employe'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.1931, June 24, P.L. 1206, art. VI, § 602. Amended 1949, May 27, P.L. 1955, § 17; 1953, July 2, P.L. 326, § 1; 1955, Sept. 7, P.L. 563, § 2; 2012, Oct. 24, P.L. 1478, No. 188, § 6, effective Jan. 6, 2014; 2020, Oct. 29, P.L. 782, No. 96, § 25, effective in 60 days [Dec. 28, 2020].