IL HB5163

Amends the Local Government Debt Reform Act to clarify that refunded bonds do not count toward statutory debt limitations if secured by and payable from an escrow account.

Requires escrow accounts to be invested in U.S. obligations, obligations guaranteed by the federal government, or highly-rated state/governmental unit bonds (within 3 highest rating classifications).

Requires an independent certified public accountant or nationally recognized feasibility analyst to certify that escrow accounts contain sufficient funds for timely payment of principal, interest, and premiums on refunded bonds.

Allows governmental units to deposit cash into escrow accounts to be held uninvested for refunding or paying principal, interest, and premiums on bonds, with such refunded bonds excluded from debt limitations.