Illinois Compiled Statutes
Information maintained by the Legislative
Updating the database of the Illinois Compiled Statutes (ILCS) is an ongoing process.
Recent laws may not yet be included in the ILCS database, but they are found on this site as Public
soon after they become law. For information concerning the relationship between statutes and Public Acts, refer to the
Because the statute database is maintained primarily for legislative drafting purposes,
statutory changes are sometimes included in the statute database before they take effect.
If the source note at the end of a Section of the statutes includes a Public Act that has
not yet taken effect, the version of the law that is currently in effect may have already
been removed from the database and you should refer to that Public Act to see the changes
made to the current law.
625 ILCS 5/3-109
(625 ILCS 5/3-109)
(from Ch. 95 1/2, par. 3-109)
Registration without certificate of title; bond.
If the Secretary of State is not satisfied as to the ownership of the
vehicle, including, but not limited to, in the case of a manufactured home, a circumstance in which the manufactured home is covered by a Manufacturer's Statement of Origin that the owner of the manufactured home, after diligent search and inquiry, is unable to produce, or that there are no undisclosed security interests in it, the
Secretary of State may register the vehicle but shall:
(a) Withhold issuance of a certificate of title until
the applicant presents documents reasonably sufficient to satisfy the Secretary of State as to the applicant's ownership of the vehicle and that there are no undisclosed security interests in it;
(b) As a condition of issuing a certificate of title,
require the applicant to file with the Secretary of State a bond in the form prescribed by the Secretary of State and executed by the applicant, and either accompanied by the deposit of cash with the Secretary of State or also executed by a person authorized to conduct a surety business in this State. The bond shall be in an amount equal to one and one-half times the value of the vehicle as determined by the Secretary of State and conditioned to indemnify any prior owner and lienholder and any subsequent purchaser of the vehicle or person acquiring any security interest in it, and their respective successors in interest, against any expense, loss or damage, including reasonable attorney's fees, by reason of the issuance of the certificate of title of the vehicle or on account of any defect in or undisclosed security interest upon the right, title and interest of the applicant in and to the vehicle. Any such interested person has a right of action to recover on the bond for any breach of its conditions, but the aggregate liability of the surety to all persons shall not exceed the amount of the bond. The bond, and any deposit accompanying it, shall be returned at the end of 3 years or prior thereto if (i) the vehicle is no longer registered in this State and the currently valid certificate of title is surrendered to the Secretary of State or (ii) in the case of a certificate of title to a manufactured home, the currently valid certificate of title is surrendered to the Secretary of State in accordance with Section 3-116.2; unless the Secretary of State has been notified of the pendency of an action to recover on the bond; or
(b-5) Require the applicant to file with the
Secretary of State an application for a provisional title in the form prescribed by the Secretary and executed by the applicant, and accompanied by a $50 fee to be deposited in the CDLIS/AAMVAnet/NMVTIS Trust Fund. The Secretary shall designate by rule the documentation acceptable for an individual to apply for a provisional title. A provisional title shall be valid for 3 years and is nontransferable for the 3-year period. A provisional title shall be clearly marked and otherwise distinguished from a certificate of title. Three years after the issuance of a provisional title, the provisional title holder shall apply for the appropriate transferrable title in the applicant's name. If a claim of ownership for the vehicle is brought against a holder of a provisional title, then the provisional title holder shall apply for a bond under subsection (b) of this Section for the amount of time remaining on the provisional title. A provisional title holder or an individual who asserts a claim to the motor vehicle may petition a circuit court of competent jurisdiction for an order to determine the ownership of the vehicle. A provisional title shall not be available to individuals or entities that rebuild, repair, store, or tow vehicles or have a claim against the vehicle under the Labor and Storage Lien Act or the Labor and Storage Lien (Small Amount) Act.
Security deposited as a bond hereunder shall be
placed by the Secretary of State in the custody of the State Treasurer.
During July, annually, the Secretary shall compile a list of all bonds
on deposit, pursuant to this Section, for more than 3 years and concerning
which he has received no notice as to the pendency of any judicial proceeding
that could affect the disposition thereof. Thereupon, he shall promptly
send a notice by certified mail to the last known address of each depositor
advising him that his bond will be subject to escheat to the State of Illinois
if not claimed within 30 days after the mailing date of such notice. At
the expiration of such time, the Secretary of State shall file with the
State Treasurer an order directing the transfer of such deposit to the Road
Fund in the State Treasury. Upon receipt of such order, the State Treasurer
shall make such transfer, after converting to cash any other type of security.
Thereafter any person having a legal claim against such deposit may enforce
it by appropriate proceedings in the Court of Claims subject to the limitations
prescribed for such Court. At the expiration of such limitation period
such deposit shall escheat to the State of Illinois.
(Source: P.A. 98-749, eff. 7-16-14; 98-777, eff. 1-1-15; 99-78, eff. 7-20-15.)