What is a core legal responsibility of asset management?

• A. Obtain court orders for every sale
• B. Provide financing for lessees
• C. Negotiate employment contracts
• D. Ensure property is recovered and sold as required by UCC Article 9 so deficiency balances litigated and collected

Answer: (D)

The main idea is handling secured collateral after a default to recover what is owed. In asset management, the legal obligation is to recover the collateral and dispose of it under the rules of UCC Article 9, so any shortfall—the deficiency balance—can be pursued and collected, typically through litigation if necessary. This means repossessing or taking possession of the asset, preserving its value, and selling it in a commercially reasonable manner while following the statutory notice and other requirements. The proceeds from the sale are then applied to the debt, and if there’s a remaining deficiency, it can be pursued through legal action.

Other tasks listed don’t fit this core duty: they are not about handling secured collateral or satisfying the debt through liquidation under Article 9.