The Illinois Secretary of State, Vehicle Services Department requires an Illinois Remittance Agent Bond for remittance agents working in the state, ensuring that payments collected for vehicles (e.g., license fees, registration fees, or taxes) are submitted to the IL Secretary of State in compliance with state law.
This surety bond is a contract involving three parties: the principal (remittance agent), the obligee (Illinois Secretary of State), and the surety company. As a legally authorized entity, the surety will provide financial assurance that the principal will meet their commitments under the agreement.
If an injured party files a claim against the principal’s bond, the surety company will provide compensation up to the full bond amount after an investigation into the validity of the claim. Damages can include failing to submit payments to the state on behalf of their clients, submitting incorrect or incomplete information resulting in penalties or fees, or mishandling client funds leading to financial loss, among others.
Surety bonds differ from insurance policies in that the principal is responsible for reimbursing the surety company for valid claims, along with any additional expenses.
The Illinois Remittance Agent Bond is a licensing requirement for remittance agents who wish to work in the state.
A remittance agent refers to an individual who accepts money intended for remittance to the State of Illinois or any of its subdivisions, officials, or instrumentalities for the purpose of settling vehicle taxes, registration fees, or vehicle licenses. This includes cases where the money is received from the public or remitted to the state at any time and whether the person provides additional services or is involved in other activities.
The bond amount required for the Illinois Remittance Agent Bond may vary, but must be at least $20,000 or equivalent to the total amount of money transmitted to the state by the applicant in the highest 15-day period during the previous fiscal year, rounded up to the nearest $1,000, whichever is greater.
As such, the cost of your bond will vary. Applicants pay only a percentage of the full bond amount called a premium. In order to obtain your premium rate, a credit check may be necessary. Those with excellent credit may receive quotes as low as 1% of the bond amount. This soft credit check will not harm your credit score.
We encourage applicants with nonstandard credit to apply for their bond regardless. EZ Surety Bonds works with several reputable and highly rated surety companies to find the best rates for applicants.
The obligee, or entity that requires the Illinois Remittance Agent Bond, is the Illinois Secretary of State. Their contact information is as follows:
Secretary of State
Vehicle Services Department Dealer Services
501 S. Second St., Rm. 069
Springfield, IL 62756
Phone: 217-782-2942
It's our goal to make surety bond applications easier than ever. To obtain your Illinois Remittance Agent Bond, simply fill out our short online form. Within 24 hours, one of our friendly surety experts will get back to you regarding your free quote.
If you have any questions or concerns along the way, you can contact us via email at bonds@southcoastsurety.com or by phone at 1-800-361-1720.
The following requirements must be met to become a remittance agent in the State of Illinois:
All licenses expire on December 31st of the issuing year. The renewal notice for your license should be sent out by the State of Illinois in September. You can request an application and informational packet from the Illinois Secretary of State, Dealer/Remitter Licensing Section by calling 217-785-8239.
The Illinois Remittance Agent Bond cost varies depending on the bond amount and may require a credit check. It can be a minimum of $20,000 or the highest amount transmitted to the state in the top 15 days of the preceding fiscal year, rounded up to $1,000, whichever is greater.
For applicants with excellent credit, the premium for this bond may be as low as 1% of the bond amount. Receive a free quote from us at EZ Surety Bonds without impacting your credit score.
After you purchase your bond, we will mail the original document to you. Most obligees require you to file the original bond with them (usually signed by the principal), although some obligees may approve of an electronic copy. Every obligee has its own unique filing requirements, so be sure to confirm the filing requirements of your obligee before doing anything with your bond.
You’ll know if you need a surety bond because some entity will have required you to obtain one. They must also inform you of which specific bond type you’ll need. There are thousands of bonds across the country, all of which vary by state and industry.
Visit EZSuretyBonds.com to browse hundreds of bonds by state, type, or industry.
