Nondefeasance, in a refunding transaction, would result in

a. both the old debt and the new debt being recorded as liabilities by the issuing government, even if resources to service the old debt have been placed in an irrevocable trust.

b. both the old debt and the new debt being recorded as liabilities by the issuing government, but only if resources to service the old debt have not been placed in an irrevocable trust.

c. the reporting of only the old debt liability. The new debt liability would not be reported until the old debt is extinguished.

d. a budgetary compliance violation in the Debt Service Fund.