Illinois Administrative Code › Title 92 - TRANSPORTATION › Part 1010 - CERTIFICATES OF TITLE, REGISTRATION OF VEHICLES › Subpart B - TITLES › Section 1010.190 - Issuance of Title and Registration Without Standard Ownership Documents - Bond

Current through Register Vol. 48, No. 28, July 12, 2024
a)
				Definitions
"Appraisal" means an affirmation statement of the current
				  wholesale value of the vehicle by a disinterested person of suitable
				  qualifications, such as a licensed new or used vehicle dealer (including
				  motorcycle, mobile home, and trailer dealers), a licensed rebuilder (for
				  salvage and junk vehicles only), a licensed real estate agent (for mobile homes
				  only), or an officer of an antique vehicle club or association (for antique
				  vehicles only).
"Cash bond" means a bond executed by the applicant for
				  vehicle ownership and accompanied by the deposit of cash in the form of
				  currency, cashier's check, money order, or bank certificate of deposit made
				  payable to the State Treasurer.
"Surety bond" means a bond executed by the applicant for
				  vehicle ownership and a person/firm authorized to conduct a surety business in
				  Illinois which obligates the guarantor to pay a third party upon default by the
				  applicant in the performance of any duty the applicant owes to any third
				  party.
"Wholesale value" means the trade-in value of a vehicle or
				  the value of a vehicle sold between licensed dealers and not at retail.
b) Statement of Policy
Section 5/3-109 of the Illinois Vehicle Code provides that,
				  in the absence of standard ownership documents, the Secretary of State may as a
				  condition of issuing a certificate of title require the applicant to file a
				  bond in the form prescribed by the Secretary of State and executed by the
				  applicant and either accompanied by the deposit of cash or also executed by a
				  person/firm authorized to conduct a surety business in Illinois.The bond shall
				  be in the amount equal to 1 1/2 times the current wholesale value of the
				  vehicle and conditioned to indemnify the Secretary of State and any prior owner
				  or lienholder and any subsequent purchaser of the vehicle, or person acquiring
				  any security interest in the vehicle, and their respective successors in
				  interest, against any expense, loss or damage, including reasonable attorney's
				  fees, by reason of the issuance of a certificate of title for the vehicle or on
				  account of any defect in or undisclosed security interest upon the right, title
				  and interest of the applicant in and to the vehicle.Any such interested person
				  has a right of action to recover on the bond for any breach of its conditions,
				  but the aggregate liability to all persons shall not exceed the amount of the
				  bond.The bond and any deposit accompanying it shall be returned at the
				  expiration of 3 calendar years from the date of filing, or prior thereto at the
				  applicant's request if the vehicle is no longer registered in this State, and
				  the currently valid certificate of title is surrendered to the Secretary of
				  State, unless the Secretary of State has been notified of the pendency of an
				  action to recover on the bond.
c) Documents Required to be Submitted to the
				Secretary of State Prior to Issuance of Title/Registration Without Standard
				Ownership Documents
1) Evidence of the right
				of the applicant to acquire title, such as a bill of sale, receipt, or canceled
				check. If such evidence is not available, an affirmation statement detailing
				the circumstances under which the vehicle was acquired without title is
				required.
2) An appraisal of the
				current wholesale value of the vehicle from a licensed new or used vehicle
				dealer (including motorcycle, mobile home, and trailer dealers); a licensed
				rebuilder (for salvage or junk vehicles only); a licensed real estate agent
				(for mobile homes only); or an officer of an antique vehicle club or
				association (for antique vehicles only). The appraisal should be an affirmation
				statement and should contain a complete description of the vehicle (year, make,
				model, and vehicle identification number); the current wholesale value; a
				statement that the vehicle is intact and that all major component parts are
				present; a statement that the appraisal value is accurate to the best of the
				appraiser's knowledge and that the affirmation is made under penalties of
				perjury; the signature and printed name of the appraiser; the firm name,
				address, and dealer license number; and the date of the appraisal. (A suggested
				Affirmation of Appraisal form follows.)
The appraisal can also be obtained from a used vehicle price
				  guide, supported by copies of the front cover and pertinent pages of the
				  guide.
AFFIRMATION OF APPRAISAL
The undersigned hereby affirms that the value of the
							 vehicle described below is $ ________ and that the vehicle is intact and all
							 major component parts are present.
Year
Make
Model
Vehicle Identification Number
I affirm, under penalties of perjury, that the
							 foregoing statement is accurate to the best of my knowledge.
Firm Name
Signature of Appraiser
Address
Printer Name of Appraiser
Dealer License Number
Date of Appraisal
3) A surety bond
				or cash bond executed in the form prescribed by the Secretary of State in an
				amount equal to 11/2 times the appraised value of the vehicle.
4) A completed application for certificate of
				title/registration accompanied by a fee of $13 for issuance of title, and if
				license plates are desired, proper registration fee according to the
				appropriate schedule.
5) A completed
				Vehicle Use Tax Return and tax payment, if applicable.