Sec Form 4 Filing - STERN RICKY @ ASTA FUNDING INC - 2020-09-29

FORM 4 Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934, Section 17(a) of the Public Utility Holding Company Act of 1935 or Section 30(h) of the Investment Company Act of 1940

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1. Name and Address of Reporting Person STERN RICKY 2. Issuer Name and Ticker or Trading Symbol ASTA FUNDING INC [ ASFI] 5. Relationship of Reporting Person(s) to Issuer (Check all applicable) _____ Director X __ 10% Owner X __ Officer (give title below) _____ Other (specify below) Senior Vice President (Last) (First) (Middle) C/O ASTA FUNDING, INC., 210 SYLVAN AVE. 3. Date of Earliest Transaction (MM/DD/YY) 09/29/2020 (Street) ENGLEWOOD CLIFFS, NJ07632 4. If Amendment, Date Original Filed (MM/DD/YY) 6. Individual or Joint/Group Filing (Check Applicable Line) __ X __ Form filed by One Reporting Person _____ Form filed by More than One Reporting Person (City) (State) (Zip)

Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned 1.Title of Security (Instr. 3) 2. Transaction Date (MM/DD/YY) 2A. Deemed Execution Date, if any (MM/DD/YY) 3. Transaction Code (Instr. 8) 4. Securities Acquired (A) or Disposed of (D) (Instr. 3, 4 and 5) 5. Amount of Securities Beneficially Owned Following Reported Transaction(s) (Instr. 3 and 4) 6. Ownership Form: Direct (D) or Indirect (I) (Instr. 4) 7. Nature of Indirect Beneficial Ownership (Instr. 4) Code V Amount (A) or (D) Price Common Stock, par value $.01 per share 09/29/2020 J( 1 )( 2 ) 145,428 D 0 D Common Stock, par value $.01 per share 09/29/2020 J( 1 )( 2 ) 871,500 D 0 I See Footnote ( 3 ) Common Stock, par value $.01 per share 09/29/2020 J( 1 )( 2 ) 714,364 D 0 I See Footnote ( 4 ) Common Stock, par value $.01 per share 09/29/2020 J( 1 )( 2 ) 318,590 D 0 I See Footnote ( 5 ) Common Stock, par value $.01 per share 09/29/2020 J( 1 )( 2 ) 187,590 D 0 I See Footnote ( 6 ) Common Stock, par value $.01 per share 09/29/2020 J( 1 )( 2 ) 243,278 D 0 I See Footnote ( 7 ) Common Stock, par value $.01 per share 09/29/2020 J( 1 )( 2 ) 30,220 D 0 I See Footnote ( 8 )

Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned ( e.g. , puts, calls, warrants, options, convertible securities) 1. Title of Derivative Security (Instr. 3) 2. Conversion or Exercise Price of Derivative Security 3. Transaction Date (MM/DD/YY) 3A. Deemed Execution Date, if any (MM/DD/YY) 4. Transaction Code (Instr. 8) 5. Number of Derivative Securities Acquired (A) or Disposed of (D) (Instr. 3, 4, and 5) 6. Date Exercisable and Expiration Date (MM/DD/YY) 7. Title and Amount of Underlying Securities (Instr. 3 and 4) 8. Price of Derivative Security (Instr. 5) 9. Number of Derivative Securities Beneficially Owned Following Reported Transaction(s) (Instr. 4) 10. Ownership Form of Derivative Security: Direct (D) or Indirect (I) (Instr. 4) 11. Nature of Indirect Beneficial Ownership (Instr. 4) Code V (A) (D) Date Exercisable Expiration Date Title Amount or Number of Shares Stock Option (right to buy) $ 8.36 09/29/2020 J( 1 )( 2 ) 10,000 ( 9 ) 12/22/2021 Common Stock 10,000 ( 10 ) 0 D Stock Option (right to buy) $ 9.57 09/29/2020 J( 1 )( 2 ) 20,000 ( 9 ) 12/18/2022 Common Stock 20,000 ( 10 ) 0 D Stock Option (right to buy) $ 8.49 09/29/2020 J( 1 )( 2 ) 20,000 ( 9 ) 12/12/2023 Common Stock 20,000 ( 10 ) 0 D

Reporting Owners Reporting Owner Name / Address Relationships Director 10% Owner Officer Other STERN RICKY C/O ASTA FUNDING, INC. 210 SYLVAN AVE. ENGLEWOOD CLIFFS, NJ07632 X Senior Vice President Signatures /s/ Ricky Stern 10/01/2020 Signature of Reporting Person Date

Explanation of Responses:

( 1 )The reporting person, Gary Stern, Emily Stern, Arthur Stern, GMS Family Investors LLC ("GMS"), Asta Group, Incorporated ("Asta Group"), the Ricky Stern Family 2012 Trust ("RSFT"), the Ricky Stern 2012 GST Trust ("RSGST"), the Emily Stern Family 2012 Trust ("ESFT"), the Emily Stern 2012 GST Trust ("ESGST", and together with the reporting person, Gary Stern, Emily Stern, Arthur Stern, GMS, Asta Group, RSFT, RSGST, and ESFT, the "Stern Group"), and Asta Finance Acquisition Inc. ("Parent"), are parties to that Rollover Financing Commitment Letter, dated April 8, 2020 (the "Commitment Letter"). ( 2 )Pursuant to the Commitment Letter, the Stern Group contributed these shares to Parent (the "Rollover") in exchange for a number of shares of Parent's common stock calculated in accordance with the Commitment Letter, and effective as of the effective time of the merger contemplated by the Agreement and Plan of Merger, dated April 8, 2020, as amended (the "Merger Agreement"), among Asta Funding, Inc., Parent, and Asta Funding Acquisition Sub Inc. ( 3 )Consists of shares of common stock owned by GMS, which may be deemed beneficially owned by the reporting person because of his position as the sole manager of GMS. ( 4 )Consists of shares held in the RSFT for which the reporting person is beneficiary and sole trustee. ( 5 )Consists of shares held in the RSGST for which the reporting person is beneficiary and co-trustee with Gary Stern. ( 6 )Consists of shares held in the ESFT for which the reporting person is sole trustee. ( 7 )Consists of shares held in the ESGST for which the reporting person is co-trustee with Gary Stern. ( 8 )Consists of shares of common stock owned by Asta Group, Incorporated, which shares are attributable to the reporting person based on his percentage ownership of Asta Group, Incorporated. ( 9 )Options were fully exercisable as of September 29, 2020. ( 10 )Each option was terminated in accordance with the terms of the Merger Agreement.

Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly.

* If the form is filed by more than one reporting person, see Instruction 4(b)(v).

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