In a current refunding scenario, which term would most likely be encountered?

In a current refunding scenario, the term most likely encountered is "redemption." This process involves the issuance of new bonds to pay off existing bonds before their maturity. The importance of redemption in current refunding lies in the fact that it allows an issuer to take advantage of lower interest rates or better financial conditions, effectively replacing older, higher-interest debt with new bonds that have more favorable terms.

When bonds are redeemed, the issuer effectively satisfies its obligation to the bondholders of the old bonds, which can lead to a reduction in interest payments and overall debt service costs. It's a strategic financial maneuver that can result in significant savings for an organization or municipality.

Other terms such as defeasance, crossover date, or contingent liability may relate to different aspects of bond financing or financial reporting, but they do not specifically describe the action taken during a current refunding, which is fundamentally about redeeming the existing debt. Thus, "redemption" aptly captures the essence of the current refunding process and its focus on replacing old debt with new.