Illinois Form RA 3 Remittance Agent’s Bond Guide – If you accept money from the public in Illinois for vehicle taxes, registration fees, license plates, or titles and remit those funds to the State of Illinois, you must be licensed as a remittance agent. A core requirement is filing Illinois Secretary of State Form RA 3, the official Remittance Agent’s Bond. This surety bond protects the public and the state by guaranteeing proper handling and timely remittance of funds.
What Is Illinois Form RA 3?
Form RA 3 is the official surety bond form required by the Illinois Secretary of State Vehicle Services Department, Dealer Services section. It is a legal instrument in which the principal (the remittance agent applicant or licensee) and a surety company authorized to do business in Illinois jointly and severally bind themselves to the People of the State of Illinois.
The bond covers obligations arising from accepting money for remittance of vehicle taxes, vehicle registration or license fees, or related services under the Illinois Vehicle Code. The form must be completed, signed, notarized, and accompanied by the surety’s Power of Attorney and Acknowledgement of Surety.
You can download the official current version of Form RA 3 directly from the Illinois Secretary of State:
Download Illinois Form RA 3 — Remittance Agent’s Bond (PDF)
Who Needs to File Form RA 3?
Under Illinois law, a remittance agent is any person who holds themselves out to the public as accepting (or actually accepts) money for remittance to the State of Illinois or its instrumentalities for vehicle-related taxes, titles, registration plates, or fees. This includes businesses that process title applications, registration renewals, or related paperwork for a fee.
Licensed motor vehicle dealers are generally exempt when the activity is incidental to their dealership business. Banks, savings and loan associations, and credit unions chartered in Illinois or by the United States are also exempt if they provide a notarized affidavit confirming they are sufficiently bonded.
Approximately 800 licensed remittance agents operate in Illinois. Each physical location where the agent conducts business requires its own bond and license.
Bond Amount Requirements for Form RA 3
Illinois statute (625 ILCS 5/3-905) sets a clear minimum bond amount:
- Minimum of $20,000, or
- An amount equal to the aggregate sum of money transmitted to the State by the applicant during the highest 15-day period in the fiscal year immediately preceding the year for which the bond is filed (rounded to the nearest $1,000), whichever is greater.
Important note: Money orders, checks, or electronic payments made payable directly to the Secretary of State or the Illinois Department of Revenue by the customer are excluded from the calculation.
The bond runs for the term of the license (ending December 31 of the calendar year) and remains in force until properly cancelled with 30 days’ written notice to the Vehicle Services Department.
How to Complete and File Form RA 3?
Follow these steps to properly execute Form RA 3:
- Obtain the bond from a surety or insurance company authorized to do business in Illinois (the Secretary of State verifies authorization via the Illinois Department of Insurance list).
- Complete the principal (applicant) and surety information, including the exact business location covered by the bond.
- Enter the correct penal sum (minimum $20,000 or the calculated higher amount).
- Specify the license term ending December 31 of the applicable year.
- Have the form signed by the principal and the surety’s authorized representative, then notarized.
- Attach the surety’s Power of Attorney and Acknowledgement of Surety.
- Submit the original completed Form RA 3 with your license application package.
The bond cannot be cancelled without 30 days’ prior written notice to the Illinois Secretary of State, Vehicle Services Department, Dealer Services, 501 S. Second St., Rm. 069, Springfield, IL 62756.
Related Forms and the Full Licensing Process
Form RA 3 is one part of the remittance agent licensing package. Related official forms include:
- Form RA 4 — Remittance Agent License Application
- Form RA 6 — Affidavit for Remittance Agent License
- Bond Affidavit for Remittance Agents (RA 17)
The license fee is $50 per location ($25 if filed after July 1). Licenses expire every December 31. Renewal applications are typically accepted between September 1 and December 31 of the preceding year.
Submit all materials to:
Illinois Secretary of State
Vehicle Services Department
Dealer Services / Dealer/Remitter Licensing Section
501 S. Second St., Rm. 069
Springfield, IL 62756
Phone: 217-785-8239 or 217-782-2942
For the most current forms and instructions, visit the official Dealers and Remitters Publications page: ilsos.gov Dealers and Remitters Forms.
Key Legal Provisions and Protections
The bond is conditioned on the proper transmittal of all remittances and performance of all undertakings under the Remittance Agent Act. If the principal fails to meet these obligations, the bond remains in full force and effect. Suit may be brought in the name of the Secretary of State for the use and benefit of the People of the State of Illinois in any court of competent jurisdiction.
These requirements are codified in 625 ILCS 5/3-905 and implemented through 92 Ill. Adm. Code Part 1019. Always verify the latest statute text on the Illinois General Assembly website for any updates.
Tips for USA Applicants Seeking a Competitive Bond Premium
Premium rates for a $20,000 (or higher) Illinois Remittance Agent’s Bond typically range from 1% to 3% of the bond amount, depending on credit, financial strength, and business history. Shop multiple authorized sureties. Provide accurate volume figures for the highest 15-day period to avoid over-bonding or under-bonding issues during audits.
Keep detailed records of all funds accepted and remitted, as the Secretary of State conducts inspections and may examine temporary permits and bond amounts.
Conclusion
Illinois Form RA 3 is a mandatory surety bond that enables individuals and businesses to operate legally as remittance agents for vehicle-related transactions. By securing the correct bond amount, properly completing the form, and submitting it with your license application, you protect both your customers and your business while complying with Illinois law.
Download the official form today and contact the Illinois Secretary of State Dealer/Remitter Licensing Section with any questions. Staying current with Form RA 3 requirements helps ensure smooth licensing and renewal for years to come.
Official Download: Illinois Form RA 3 — Remittance Agent’s Bond (PDF)