(a) In each school district in which military instruction is conducted under a state or federal law requiring the district to give bond or otherwise indemnify this state or the United States or any authorized agency of either in an amount and on conditions determined by any agency under that law for the care, safekeeping, and return of property furnished, the board of trustees may:
(1) make contracts with the proper governmental agency with respect to the teaching of courses in military training; and
(2) execute, as principal or surety, a bond to secure the contracts to procure arms, ammunition, animals, uniforms, equipment, supplies, means of transportation, or other needed property.
(b) In a district in which military instruction is given as provided by Subsection (a), available school funds may be spent to:
(1) procure from any guaranty or surety company any bond authorized by Subsection (a), in the amount and on the conditions required by the governmental agency; or
(2) reimburse this state or the United States for any loss pursuant to the terms of any contract entered into.