Sallie Mae 2011 Annual Report Download - page 13

Our originating or servicing of federal and Private Education Loans also subjects us to federal and state
consumer protection, privacy and related laws and regulations. Some of the more significant federal laws and
regulations that are applicable to our business include:
• the Truth-In-Lending Act;
• the Fair Credit Reporting Act;
• the Equal Credit Opportunity Act;
• the Gramm-Leach-Bliley Act; and
• the U.S. Bankruptcy Code.
Our Business Services segment’s debt collection and receivables management activities are subject to
federal and state consumer protection, privacy and related laws and regulations. Some of the more significant
federal statutes are the Fair Debt Collection Practices Act and additional provisions of the acts listed above, as
well as the HEA and under the various laws and regulations that govern government contractors.
These activities are also subject to state laws and regulations similar to the federal laws and regulations
listed above.
Our Upromise 529 college-savings activities are subject to regulation by the Municipal Securities
Rulemaking Board, the Financial Industry Regulatory Authority (“FINRA”) and the SEC, as well as various state
regulatory authorities.
Company History
We were formed in 1972 as the Student Loan Marketing Association, a federally chartered government
sponsored enterprise (“GSE”), with the goal of furthering access to higher education by providing liquidity to the
student loan marketplace. On December 29, 2004, we terminated the federal charter, incorporated SLM
Corporation as a business corporation in the State of Delaware, and dissolved the GSE. SLM Corporation is now
a publicly-traded holding company operating through its various subsidiaries. Our principal executive offices are
located at 300 Continental Drive, Newark, Delaware 19713, and our telephone number is [phone].
We established the Bank in 2005 as an industrial bank chartered under the laws of the State of Utah. It is
located in Murray, Utah. Under its banking charter, the Bank may make consumer loans and may accept Federal
Deposit Insurance Corporation (“FDIC”) insured deposits, including NOW accounts. It is a depository institution
subject to regulatory oversight and examination by both the FDIC and the Utah Department of Financial
Institutions. Applicable federal and state regulations relate to a broad range of banking activities and practices,
including minimum capital standards, maintenance of reserves and the terms on which a bank may engage in
transactions with its affiliates. In addition, the FDIC has regulatory authority under the Financial Institutions
Supervisory Act (“FISA”) to prohibit the Bank from engaging in any unsafe or unsound practice in conducting its
business.
On August 22, 2006, the Company acquired Upromise Inc. and its subsidiaries, Upromise Investments, Inc.
(“UII”) and Upromise Investment Advisors, LLC (“UIA”). UII is registered under the Securities and Exchange
Act of 1934, as amended, as a broker dealer with the SEC, is a member of FINRA and the Municipal Securities
Rulemaking Board (“MSRB”). UIA is registered under the Investment Advisers Act of 1940, as amended, with
the SEC as an investment adviser.
Item 1A. Risk Factors
Our business activities involve a variety of risks. Below we describe the significant risk factors affecting our
business. The risks described below are not the only risks facing us — other risks also could impact our business.
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