I have a project car with an Iowa bonded ***le that I would like to sell. I have a buyer in Illinois who is interested. I understand that Illinois can be a nightmare in this kind of transaction. Anyone have experience or advice to offer?
Something I have found when selling anything is that every time I give advice to someone who is buying from me it has come back and bit me in the ***.
How long ago was the ***le bonded? Most states the have bonded ***les have a 3 year bonding cycle (should be able to ask your state how long the ***le needs to be bonded), at which time the bonded ***le becomes the real deal. If the ***le is past the 3 (or however many years required by the state it was issued in) year limit that ***le is probably better then an ordinary ***le! If the bonded ***le is short of the bonding time, in IL you can't legally sell the car! The time constraint is part of the bonding process that the person that had it bonded signed onto. The ***le can not be transferred until the bonded time has expired. The time required for a bonded ***le to become "the" official ***le in IL is 3 years past the issue date. Bonded ***les in IL for the past 4 or so years are issued as an original ***le. Older ones stated they were bonded but became the legal ***le after 3 years. I've purchased bonded ***led cars in IL before and never had a problem, but all were past the 3 year time. My coupe was bonded in Jan 2012, the ***le I hold for it is the only ***le recognized by the state of IL and is its legal ***le in all 50 states. Gene
I know Illinois is strict on the bonding rules , and will not take a bonded car from out of state till its cleared . even a ***le with the word bonded or in bond on it can present a can of worms unless you have paperwork from the home state releasing it . but since Ill and Iowa are recipitory states they might be able to transfer it Have him call the Illinois secretary of state in springfield on monday ( actually tuesday as monday is hell day down there ) and find out for sure . if need be they will mail a copy of the proceedure needed or paperwork needed , but a local DMV /SOS office those people barely know how to do ther jobs . there just license pushers .
Can either of you gentlemen cite the specific Illinois Code or Secretary of State Regulations that support your statements about restrictions on bonded ***les? Until this week, the last bonded ***le I did in Illinois was about 25 years ago. This week I just completed and submitted an application for another. The latter utilizing a 'packet' sent by the ILSOS office after discussing the subject on the phone. Nowhere in the prior or current transaction was there any mention made of time restrictions on the transfer of a bonded ***le. The whole point of a bonded ***le is that a subsequent claimant, should one appear, gets compensated for the vehicle by forfeiture of the bond, the amount of which is 1 1/2 times the current appraised 'wholesale value' of the vehicle, not by returning the vehicle to the claimant. The 3 year life of the bond is merely the "statute of limitations" under which a potential claimant may make his/her claim on the bond. You both may be correct, but I have my doubts until I know the official basis of the notion that a bonded ***le is not 'negotiable' for three years. Ray
I just did a bonded ***le on a car. It took several weeks to get it, and the ***le wouldn't be issued if there was any claim to the car legally. With the computer age we live in they can clear them in no time (considering years needed prior to). The ***le I rec'd has no limits and it's now the legal do***ent to the car. I know other state offices can their knickers n a twist over such things, but a visit to a bondsman's office and small fee (tax and the bond cost) later I was done.
3 years ago I tried to buy a out of state car that was bonded ( michigan ) that the owner said was clear ( as Michigan is 3 years wait time the ***le was about 9 years old ) , IL SOS would not accept it ( the MI copy of the ***le we had said it was IN BOND and had the bond companys name on it ) at the DMV unless I had proof that it was cleared by Michigan , so I paid for the man to rerun his ***le ( which was a pain as he had to explain why it needed to be corrected as they said it was ok for sale and told he should have recieved a letter saying the car was his clear and outright ) we waited 2 weeks he got the new clear ***le , transfered it to me and I went thru SOS with no problems other than they wanted me to bring the car to the DMV for a vin inspection , the SOS cop walked out looked at the vin , we went inside he talked to my clerk and I got my paperwork and a clear ILL ***le in a few weeks . ( never had a VIn inspection on a out of state vehicle purchase is this normal ??) being its in bond with another state ( money is held by the state or surety company ) that might be a issue as the period of time has not legally lapsed (legal technicality ) and who is holding the bond . I do not know if you can transfer a bond , I do know some bond companies are not capable of doing business in Illinois if they are not registered with the state or recognised by the state .
Thanks for all of the excellent responses. I got the bonded ***le about a year ago so it still has two years to go until it's "clear". I got my bond from my auto insurance co. When starting the process I questioned both my insurance agent and the county treasurer's office about transferring a bonded ***le and neither one could give me a clear answer. When talking to my prospective buyer I suggested he call his local county office to see if they could give him any answers. Sounds like he may be making more phone calls to clear things up. Hope he doesn't get discouraged. Thanks Again
NONE of these responses answer the question definitively. However, I have discovered I have in hand the answer as regards the State of Illinois. The do***ent is the form SM - RT OPR-23.9... "Secretary of State Security Bond for Registration Without Certificate of ***le". It plainly states that the Bond indemnifies the State of Illinois and also for the "benefit of any prior owner or lienholder and any subsequent purchaser.........etc., etc." including future lienholders. As I stated in my earlier post, the Bond exists to reimburse any claimants that show they HAD a prior interest in the vehicle.....but they get the Bond money....NOT the vehicle. According to this do***ent, once a Bonded ***le has been issued to the current owner, he/she/they, and any subsequent owner(s) and/or lienholders, are free of any prior claims against the vehicle. Therefore, it follows that the vehicle may be sold, borrowed upon or otherwise dealt without any "waiting period"...........at least in the State of Illinois. Now, THAT does not say that the same provisions automatically apply to an Out-of -State Bonded ***le being brought INTO Illinois if the bond period had not lapsed.. I would suppose it might have to be shown that the original Bond issuer would extend the coverage to Illinois until the Bond period had lapsed. Or, perhaps, Illinois would require a new Surety Bond to protect itself and the new owner. But it seems clear that an Illinois Bonded ***le does not carry any restrictions or waiting period as regards subsequent transactions within Illinois. Your State may vary. Scan of the ILSOS do***ent is attached. Ray
All I can tell you is I was told by the licensing agency, and by the surety bond issuer that I could not legally sell the vehicle before a 3 year period. The application was dated 12/18/2011. I received a letter from the State of IL dated 2/2/2015 (3 years to the date of the ***le issue date) that the bond has reached maturity. Included with the State letter was the original signed papers between me and the insurance company. The paper from the Security bond application: "This bond is subject to all applicable provisions of the Illinois Compiled Statutes, the same as if said provisions were set forth in full herein, and may not be cancelled or revoked by the principal or the Surety prior to the time the Secretary of State is required to return the same pursuant to 625 ILCS 5/3-109 of said law.. Seems clear to me there is a time limit placed on everyone concerned. I suspect if you look up "said law" the time limitations will be there. To the original poster, If you have a ***le In Bond in hand, in your name, you should be able to send it into your DMV and get a good ***le. If there is a problem, they will notify you, and then you will know and can let all of us know. Gene
I respectfully disagree with your conclusions. Yes, the Bond is irrevocable for three years. How else would the State or potential claimant be ***ured of compensation should a claimant appear? And, yes, at the end of the Bond period, the Bond terms have been fulfilled and the expired Bond is returned. None of that has any bearing on the ***le that was issued. In fact, it ***ures the ***le is free and clear precisely because there IS a Bond posted to cover the potential liability should a valid claimant appear within three years. Where none of that so, the ***le would be a 'provisional ***le' and the car would be, in effect, impounded for three years and the new owner could do nothing with it until three years had p***ed. And, in that event, there really wouldn't be a need for a Bond. You would simply have to forfeit the vehicle to the claimant. But that is not how it works. Instead, if a valid claimant appears, he gets the Bond money and goes on his way.....compensated for the vehicle at one and a half times the appraised value of the vehicle when the ***le was issued to the new owner. Ray
When I bonded a ***le in Iowa, the inspector and the lady in the Treasurer's office both told me I could sell the car with the bonded ***le (because I asked). But, that doesn't really give you a solid answer on your end if Illinois thinks differently. Also, it seems weird to me that my insurance company would give me a bond for a vehicle in my possession, and why that bond would still be any good for the next owner even if the three years isn't up yet. My regular collision and liability insurance doesn't go with the car when sold.
Because the bond is for: a) a period of three years (typically), b. the bond isn't directly for your benefit, but for the benefit of the State and the potential claimant. The State requires the recipient to pay for the Bond because they have issued the ***le to him/her by request and are taking some degree of risk that the issuance of the ***le may be contested. In the event a claimant appears, neither you, nor any subsequent owner, have anything to do with the matter, as it is between the claimant, the State and the bond issuer. So, the bond isn't transferred with the car......it remains with the State until the statutory limit for claims regarding the initial ***le issuance has expired. Ray
yes our state has some very complex laws when it comes to dealing with financial , legal or business matters specially with out of state businesses , they have to be registered with the state and graded before they can do business . this is why lots of out of state banks buy established banks in Illinois to get the authorities to operate ( banks are regulated by the Illinois commerce commision besides several other commisions , just like a trucking company ) insurance companies that is there main business most of there business is thru bonds ( holding money ) bonding is a form of insurance in case of damages . ( I never heard what happens when a bond gets called on yet , on what happens legally and what happens to whom ) most bonds I know of they go the period then get a clear ***le . I know of several insurance companies that are not allowed in Illinois to sell certain types of services they offer due to statues of the state they domocile in conflict with ours or the laws of Illinois prohibit the service . or they do lousey service violated a IL state statue and/or had a run in with our AG and are kicked off the certificate of good standing list ( https://www.cyberdriveillinois.com/departments/business_services/corp.html )
The Jalopy Journal
