What information does a calculation of deficiency provide to the member?

The calculation of deficiency is specifically designed to determine the remaining amount owed by the borrower after the sale of collateral, typically in cases where a vehicle or property has been repossessed. This value is critical because it represents the difference between the outstanding loan balance and the money received from selling the collateral.

When collateral is sold, if the sale proceeds are less than what is owed on the loan, the borrower will have a deficiency. This means they still owe the lender this remaining balance. Consequently, option B accurately captures what a deficiency calculation provides: the remaining loan balance after collateral sale proceeds, which is essential for understanding the borrower's financial obligations post-collateral sale.

The other options, while they mention important aspects of the loan, do not address the specific purpose of a deficiency calculation. For example, knowing the total amount borrowed and the current loan balance does not reflect the impact of collateral liquidation. Similarly, the full repayment amount due refers to the total of the loan without considering any offsets from collateral sales. Understanding fees associated with late payments is also peripheral to the issue of deficiency and does not directly pertain to the remaining loan obligations following the sale of collateral.