Remittance agents are those who are engaged in the profession of collecting money from Illinois motor vehicle dealers for the payment of taxes and vehicle registration fees.
To be a remittance agent, you must be licensed by the state of Illinois and you must post a surety bond.
The obligee, that is, the entity requiring you to obtain the remittance agent surety bond is the Illinois Secretary of State – Vehicle Services Department, Dealer Licensing Division.
The Illinois remittance agent bond amounts is for at least $20,000. The bond amount was formerly a minimum of $10,000; however this is no longer the case.
We’ll break down the amount of bond required to make it easy for you:
The calculation for the surety bond amount you are required to purchase is as follows.
WHICHEVER amount is GREATER.
Additionally, you are required to post a remittance agent bond for each location where you plan to act as a remittance agent.
Your remittance agent bond is required by the state of Illinois.
The purpose of the bond is a financial guarantee that you will act in accordance with all laws, rules, and statutes governing the remittance agent profession.
The bond protects the state and your customers from acts of fraud, theft, or criminal misrepresentation committed by a remittance agent, owners, managers, or employees in their professional conduct.
But to be clear, the remittance agent bond is not an insurance policy.
What this means is that should a claim be filed against a bond and paid, legally the principal (the purchaser – you) of the remittance agent bond is legally liable to reimburse the surety in full for all costs involved in the satisfaction of the claim.
You should be aware that your remittance agent bond will expire on December 31st of the year in which it was purchased.
This coincides with licensing provided by Illinois.
Remittance agent surety bonds which are purchased at various times in a calendar year may be prorated for cost, but in all cases will have the same December 31st expiration date.
As an applicant, you will pay nowhere near the $20,000 amount required (or more) required for the remittance agent bond.
Here are at least some the factors which will go into determining the premium, or the price for this bond:
But just as an idea of what the cost of a remittance agent bond might cost, an applicant for a $20,000 bond with good credit may pay as little as $200 a year or 1% of the bond’s amount.
The amount you will pay, however, will be determined by the above criteria and your credit score.
AmeriPro Surety Bonds is a surety bonds-only agency.
What this means for you is that your surety bond is our focal point.
We also provide license and permit, contractor, court, and fiduciary bonds throughout Illinois and nationwide.
We thank you for choosing our agency and we look forward to working for you.