Sallie Mae 2012 Annual Report Download - page 16

as regulations issued by the FDIC, and undergoes periodic regulatory examinations by the FDIC and the UDFI.
SLM Corporation is also subject to regulation and periodic examination by these entities as to the nature and
extent of services and financial strength it provides to the Bank.
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:
• various laws governing unfair, deceptive or abusive acts or practices;
• the Truth-In-Lending Act;
• the Fair Credit Reporting Act;
• the Equal Credit Opportunity Act;
• the Servicemembers Civil Relief Act;
• the Telephone Consumer Protection Act; and
• the Gramm-Leach-Bliley Act.
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, including supervision by the
CFPB of larger consumer debt collectors as discussed above. 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 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 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 Salt Lake City, Utah. Under its banking charter, the Bank may make consumer loans and may accept
FDIC-insured deposits, including NOW accounts. It is a depository institution subject to regulatory oversight and
examination by both the FDIC and the UDFI. 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 to prohibit the Bank from engaging in any unsafe or unsound practice.
On August 22, 2006, we acquired Upromise Inc. and its subsidiaries, Upromise Investments, Inc. (“UII”)
and Upromise Investment Advisors, LLC (“UIA”). UII is registered with the SEC as a broker-dealer pursuant to
the Securities and Exchange Act of 1934, as amended, and is a member of the Financial Industry Regulatory
Authority and the Municipal Securities Rulemaking Board . UIA is registered with the SEC as an investment
advisor pursuant to the provisions of the Investment Advisers Act of 1940, as amended. In 2012, we formed
Upromise Investments Recordkeeping Services, LLC, which is registered with the SEC as a transfer agent
pursuant to the Securities and Exchange Act of 1934, as amended.
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