Illinois RT DS 47 Designated Agent Bond Guide – Illinois vehicle dealers who sell or deal in five or more vehicles per year must obtain a motor vehicle dealer license from the Illinois Secretary of State. A key requirement is the Designated Agent Bond, filed on Form RT DS 47. This surety bond protects the state and the public by ensuring dealers properly collect and remit title and registration fees and taxes.
This guide explains what Form RT DS 47 is, who needs it, the current bond amount, how to complete and submit it, and where to download the official form. Information is based on current Illinois Secretary of State requirements and the Illinois Vehicle Code.
What Is Form RT DS 47?
Form RT DS 47 is the official “Designated Agent Bond for Illinois Vehicle Dealers” issued by the Illinois Secretary of State, Vehicle Services Department, Dealer Services. It is a surety bond form that names the vehicle dealer as principal and a licensed surety company as surety. The bond runs to the People of the State of Illinois.
The bond guarantees that the licensed dealer will faithfully collect and remit all title and registration fees and taxes required under the Illinois Vehicle Code and comply with applicable rules of the Secretary of State. If the dealer fails to do so, the state can make a claim against the bond.
You can download the current official Form RT DS 47 (PDF) directly from the Illinois Secretary of State here: Download Form RT DS 47.
Who Needs the Designated Agent Bond?
Under Illinois law, a vehicle dealer is any person engaged in the business of selling or dealing in five or more vehicles during the year, or who acts as an intermediary, agent, or broker for a licensed dealer or vehicle purchaser, or who advertises such a business. This includes new vehicle dealers, used vehicle dealers, motorcycle dealers, trailer dealers, and wholesalers.
The bond is required for each licensed location. Dealers must maintain the bond for the first 60 consecutive months of business operations, provided they have not been delinquent or deficient in transmitting title and registration fees or taxes. After that period and with a clean compliance record, the bonding requirement may be lifted.
For full dealer licensing details, visit the official Illinois Secretary of State Dealers and Remitters page: Dealers and Remitters.
Current Bond Amount and Key Terms
The penal sum of the Designated Agent Bond on the current Form RT DS 47 is Fifty Thousand Dollars ($50,000). The bond is location-specific and covers the licensing period ending December 31 of the applicable year.
Key conditions include:
- The principal (dealer) must properly collect and remit title and registration fees and taxes.
- The surety must notify the Illinois Secretary of State, Dealer Licensing Section, at least 30 days prior to any cancellation of the bond.
- The bond remains in force for the term of the license or renewal and must expire no sooner than December 31 of the year for which the license is issued or renewed.
An alternative to the surety bond is a certificate of deposit in the same amount, held in the business name and the Secretary of State’s name. The original CD must be submitted with the license application.
How to Complete and File Form RT DS 47?
The form is typically completed by the surety company after the dealer applies for the bond. Essential information required includes:
- Name of the principal (dealer) and location of the business.
- Name of the surety company (must be authorized to write bonds in Illinois).
- Bond amount ($50,000).
- Licensing period ending date (December 31, 20__).
- Signatures of the principal and authorized surety officer, along with corporate seals where applicable.
- Witness information.
Once executed, the original signed bond (or certificate of deposit) must be submitted with the dealer license application package to:
Illinois Secretary of State
Vehicle Services Department
Dealer Services / Dealer Licensing Section
501 S. Second St.
Springfield, IL 62756
Additional required items for a new dealer license generally include a certificate of liability insurance meeting minimum limits ($100,000 bodily injury per person, $300,000 per accident, $50,000 property damage), proof of criminal background check, zoning or business license documentation, and (for first-time used vehicle dealers) proof of completion of the required 8-hour Secretary of State training course.
Why the Bond Matters for Illinois Vehicle Dealers?
The Designated Agent Bond serves as financial protection for the State of Illinois and consumers. It helps ensure that fees and taxes collected during vehicle sales and title/registration transactions are properly remitted. Claims can arise from failure to transmit those funds or other violations of the Illinois Vehicle Code related to dealer operations.
Maintaining an active, correctly filed bond is essential for obtaining and renewing a dealer license. Failure to maintain the required bond can result in denial, suspension, or revocation of the license.
Where to Get the Bond and Official Resources?
Dealers obtain the bond through a licensed surety or insurance company authorized to do business in Illinois. Premiums vary based on credit history, business experience, and other underwriting factors; typical annual premiums for good credit start in the low hundreds of dollars for a $50,000 bond.
Always use the current official form. Download Form RT DS 47 here: Official Form RT DS 47 PDF.
For the most up-to-date licensing requirements, forms, and contact information, refer to the Illinois Secretary of State website:
Requirements can change. Always verify current rules, bond amounts, and form versions directly with the Illinois Secretary of State Vehicle Services Department before applying or renewing a dealer license.