Illinois Form CFT IT 12 Installment Surety Bond Guide

Illinois Form CFT IT 12 Installment Surety Bond Guide – Owners of second division motor vehicles in Illinois who choose to pay registration fees in installments must file a surety bond using Form CFT IT 12. This official Illinois Secretary of State document guarantees payment of the second installment of license or registration fees under the Illinois Vehicle Code. The form is administered by the Vehicle Services Department, Commercial & Farm Truck Division.

This guide explains what Form CFT IT 12 is, who needs it, how to complete it, bond amounts, and where to submit it. All information is based on current official Illinois Secretary of State resources and the Illinois Vehicle Code.

What Is Form CFT IT 12?

Form CFT IT 12 is the official Second Division Motor Vehicles Installment Surety Bond required by the Illinois Secretary of State. It is used when vehicle owners elect to pay flat weight registration taxes or International Registration Plan (IRP) fees in two installments under the provisions of 625 ILCS 5/3-816.

The bond ensures that the second half of the registration fees will be paid on time. If the principal fails to pay, the surety company becomes responsible for paying the outstanding amount to the Secretary of State. The bond cannot be cancelled during the registration year for which it is filed, and the surety’s liability is absolute.

The current version of the form is CFT IT-12.7 (June 2024). You can download the official PDF here: Illinois Form CFT IT 12 Download.

Who Needs the Second Division Motor Vehicles Installment Surety Bond?

This bond is required for owners or operators of second division motor vehicles who choose installment payment of registration fees. Second division vehicles are defined under Illinois law as those designed for:

  • Carrying more than 10 persons
  • Use as living quarters (such as RVs or campers)
  • Pulling or carrying freight, cargo, or implements of husbandry
  • First division vehicles remodeled for second division use
  • First division vehicles registered as school buses

Common examples include commercial trucks, buses, trailers, farm trucks, and certain recreational vehicles. The bond is specifically needed when paying fees under either:

  • International Registration Plan (IRP) — second installment due October 1
  • Fiscal Year registration — second installment due January 1

A separate bond form must be completed for each type of registration. Owners who pay the full registration amount upfront do not need this bond.

Bond Amount and Coverage

The penal sum (bond amount) equals the amount of the second installment of fees due. Coverage typically ranges from $500 to $500,000 depending on the total second installment owed for the vehicles being registered. Premium rates charged by surety companies generally range from 2% to 10% of the bond amount and are based on the applicant’s credit and financial standing.

The bond is issued for one registration year and remains in full force until the second installment is paid or the surety fulfills the obligation.

How to Complete Form CFT IT 12?

Follow these steps carefully when filling out the form:

  1. Obtain the official form from the Illinois Secretary of State website (link provided above).
  2. Enter the surety bond number (assigned by the surety company).
  3. Identify the principal(s): Provide the full name and address of the taxpayer. For partnerships, list all partners. For corporations, list the names and addresses of three officers.
  4. Identify the surety: Enter the full name and address of the corporate surety company (must be licensed to do business in Illinois) and the name and address of the agent.
  5. State the penal sum in both words and dollars (the amount of the second installment).
  6. Check the appropriate box for the type of registration:
    • International Registration Plan — Oct. 1, 20__
    • Fiscal — Jan. 1, 20__
  7. Complete the date the second installment payment is due.
  8. Have the principal and surety execute the bond with required signatures, seals, and power of attorney from the surety.
  9. Attach any required supporting documents from the surety company.

The form includes spaces for individual, partnership, or corporation signatures, as well as the surety’s attorney-in-fact and secretary.

Where to Submit Form CFT IT 12?

Submit the completed and executed bond to:

Secretary of State
Vehicle Services Department
Commercial & Farm Truck Division
501 S. Second St., Rm. 300
Springfield, IL 62756
Phone: 217-785-1800
Website: ilsos.gov

Contact the Commercial & Farm Truck Division for specific submission instructions related to IRP or Fiscal registrations, as requirements can vary based on fleet size and timing.

Why the Bond Is Required?

Under 625 ILCS 5/3-816, Illinois allows installment payment of certain second division vehicle registration fees to ease cash-flow burdens for commercial and farm operators. The surety bond protects the state by guaranteeing that the second payment will be made. If the principal defaults, the Secretary of State notifies the surety, which must pay the outstanding installment immediately.

This requirement supports compliance with Illinois vehicle registration laws while providing flexibility for vehicle owners.

Tips for Obtaining the Surety Bond

  • Work with a surety company authorized to issue bonds in Illinois and approved by the Illinois Department of Insurance.
  • Apply early, as underwriting can take time depending on credit history and the bond amount.
  • Keep a copy of the executed bond for your records.
  • Monitor the second installment due date carefully to avoid a claim against the bond.
  • If you need bonds for both IRP and Fiscal registrations, file separate Form CFT IT 12 documents.

Additional Resources

Always verify the latest form version and requirements directly with the Illinois Secretary of State, as procedures may be updated. For personalized assistance with obtaining the bond, contact a licensed surety provider familiar with Illinois commercial vehicle requirements.

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