Section 2512. Undertaking by the state, municipal corporation or public officer

1. Any provision of law authorizing or requiring an undertaking
  to be given by a party shall be construed  as  excluding  the  state,  a
  domestic  municipal  corporation  or  a  public officer in behalf of the
  state or of such a corporation. Such parties shall, however,  be  liable
  for  damages  as  provided  in  such  provision  of law in an amount not
  exceeding an amount which shall be fixed by the court whenever it  would
  require an undertaking of a private party.
    2. Where an appeal is taken by any such party, only the court to which
  the  appeal  is taken may fix the amount which shall limit the liability
  for damages pursuant to this section.