Sallie Mae Bank's Retail Deposit Account
Terms and Conditions Agreement

IMPORTANT — PLEASE READ CAREFULLY AND RETAIN FOR YOUR RECORDS

In establishing a High-Yield Savings Account and/or Certificates of Deposit account with Sallie Mae Bank, you are required to indicate your agreement to and acceptance of (1) this document, Sallie Mae Bank’s Retail Deposit Account Terms and Conditions Agreement (the “Agreement”); (2) Sallie Mae’s Privacy Notice, which can be accessed at http://www.salliemae.com/about/privacy_practices.htm; and (3) Sallie Mae Bank’s Electronic Communication Disclosure Information and Consent, which is located at http://www.salliemae.com/banking/ecd.

Sallie Mae Bank’s Retail Deposit Account Terms and Conditions Agreement is a contract between you and Sallie Mae Bank that sets forth the terms and conditions under which Sallie Mae Bank deposit products are made available to you. By indicating your acceptance of this Agreement and the Privacy Notice and by establishing, using or continuing to have a Sallie Mae Bank deposit Account, you agree to be bound by the terms and conditions contained in this Agreement, including the Arbitration and Funds Availability provisions, as may be amended. You also agree to pay all charges incurred as set forth in the “Fees and Charges” section of this Agreement and any other fees applicable to your Account. If you are establishing a joint or multiple party account, one accountholder indicating his/her acceptance of this Agreement and acknowledgement of receipt of the Privacy Notice represents affirmative acceptance of this Agreement and acknowledgement of receipt of the Privacy Notice by all accountholders. Similarly, one accountholder accepting Sallie Mae Bank’s Electronic Communication Disclosure Information and Consent or any other document required to be agreed to by an accountholder represents affirmative acceptance by all accountholders. By establishing an Account, you are confirming that you have read the accompanying account documentation and everything you have stated is true and accurate and you agree that information you will provide us in the future regarding your Account and any transactions that will be conducted in your Account will also be true and accurate. If any provisions in other account documents are inconsistent with this Agreement, this Agreement governs. Please read this Agreement and all account documents carefully. You may print it for your future reference.

IMPORTANT LEGAL NOTICE

This Agreement contains an Arbitration Provision. Unless you reject the Arbitration Provision, it will govern all Bank deposit Accounts that are subject to the terms and conditions contained therein. The Arbitration Provision (including instructions for rejecting the Arbitration Provision and an explanation of how and when the Arbitration Provision will become effective if you do not reject it) is set forth at the end of this Agreement.

THE ARBITRATION PROVISION MAY SUBSTANTIALLY LIMIT OR AFFECT YOUR RIGHTS. PLEASE READ THE ARBITRATION PROVISION CAREFULLY AND KEEP IT FOR YOUR RECORDS.

1. General
   
   a. Definitions for Sallie Mae Bank Deposit Products

“Account” shall mean the deposit product account you open with Sallie Mae Bank either for the Sallie Mae Bank High-Yield Savings Account or Sallie Mae Bank Certificate of Deposit.

“Agreement” shall mean the Sallie Mae Bank’s Retail Deposit Account Terms and Conditions Agreement.

“CD” shall mean Sallie Mae Bank’s Certificate of Deposit product.

“EFT” shall mean electronic funds transfer, a service available on your Account, which is described in detail in Section 10 below.

“Privacy Notice” shall mean Sallie Mae’s Privacy Notice, which governs the Bank’s customer information-related operations and is located online at http://www.salliemae.com/about/privacy_practices.htm.

“Savings Account” shall mean Sallie Mae Bank’s High-Yield Savings Account.

“You” and “your” shall mean the person or persons to whom a Savings Account or CD is titled and any person(s) who are authorized users on the Savings Account or CD, as provided for in this Agreement.

“We,” “us,” and “our” shall mean Sallie Mae Bank, our successors, affiliates, assignees and service providers.

The use of headings in this Agreement is for ease of reference only.

b. Business Days

Our normal business days are Monday through Friday, excluding holidays. Saturday, Sunday, and federal holidays are not considered business days, even if we are open.

c. Changes to Address, Contact Information or Name

We will use the most recent contact information you have provided to us to communicate with you. You are responsible for notifying us of any change in your address, other contact information (including telephone number and email address) or your name. You may notify us of any changes to your address online at https://banking.salliemae.com or by calling us at 877-346-2756 (877-3GO-2SLM). If your name has changed, you must call us at 877-346-2756 (877-3GO-2SLM) for instructions to follow to change the way your name appears on your Account. Informing us of your address or name change in any other manner is not sufficient. Changes to your telephone number and email address can be communicated to us through our website, by regular mail or via telephone. IMPORTANT NOTE: If, in addition to your Account(s), you have another product or service with Sallie Mae, you must follow separate procedures as specified in the documentation for those products and services to inform Sallie Mae of changes to your name and/or contact information.

d. Communicating with You

As noted above, we will communicate with you using the most recent contact information you have provided. To the extent permitted by applicable law, and without limiting any other rights we may have, you consent to our communicating with you, in connection with this Agreement and/or your Account(s) or any other account you may have with us, using any phone number or email address that you provided in your application for an Account, or using any phone number or email address that you provide in the future. You authorize us to communicate with you using any current or future means of communication, including, but not limited to, automated telephone dialing equipment, artificial or pre-recorded voice messages, SMS text messages, email directed to you at a mobile telephone service, or email otherwise directed to you. WE MAY USE SUCH MEANS OF COMMUNICATION EVEN IF YOU WILL INCUR COSTS TO RECEIVE SUCH PHONE MESSAGES, TEXT MESSAGES, OR EMAILS.

2. Opening Your Account / Account Ownership

You may open a Savings Account or CD through our online application process at https://banking.salliemae.com. We require that single accountholders and primary accountholders for multiple party Accounts satisfy the applicable age of majority requirements. In addition, other important information regarding the Account opening process is presented below.

a. Types of Account Ownership

There are various ways in which Account ownership can be established. At Sallie Mae Bank, you may establish an individual, joint or multiple party Account, as follows:

1. Individual Account: An individual account is an Account opened in the name of one person. Transactions on an individual account require the authorization of the individual accountholder.


2. Joint or Multiple Party Accounts: A multiple party account (which includes any joint account) is an Account that is opened in the name of more than one individual. To establish ownership rights, Accounts held by multiple accountholders must be titled in the names of all accountholders on the books and records of Sallie Mae Bank. If you have designated this Account, as appropriate, in the Account documentation as a joint, pay-on-death (“P.O.D.”) or trust account (also known as a tentative trust or Totten trust), as defined in Utah's Multiple-Party Accounts Law, Utah Code § 75-6-101 et seq. ("UTMPAL"), as amended from time to time, then this Account is a multiple-party account subject to the UTMPAL. A party to a multiple-party account, which includes a person identified as a trustee of an account for another whether or not a beneficiary is named, is a person who possesses a present right to draw upon funds in the account. Beneficiaries of trust accounts (including P.O.D. payees of P.O.D. accounts), as set forth in the UTMPAL, are not parties to multiple-party accounts. There may be multiple beneficiaries and multiple depositors associated with a single trust account. Unless the account documentation expressly provides otherwise and except for certain retirement benefits like Social Security, upon the death of a party to a multiple-party account, the funds in the Account shall belong to the surviving party or parties (and not to the estate of the deceased person). All monies and items deposited in a multiple-party account shall at all times be subject to withdrawal or disposal, in whole or in part, by any one or more of the parties to the Account. We may pay the balance of a multiple-party account to any party to the Account even if another party is deceased. For additional information, see the “Death of an Accountholder” section below. If one or more parties to a multiple-party account become incompetent, we may pay the balance of the Account to any party or parties, even if we have received notice of an adjudication of incompetency and appointment of guardian. Each party to a multiple-party account authorizes every other party to endorse and to deposit to the Account any item payable to one, both or all of them, and authorizes us to accept for deposit any item payable to one, both or all of them with or without endorsement. We may honor Account instructions from any party to a multiple-party account except as otherwise provided under applicable law, including instructions to close the Account, even if such instructions are inconsistent with instructions given by any other party or parties. It is important to note that every accountholder is jointly and severally responsible for paying overdrafts created by any authorized signer(s) or party to the Account, whether or not they participate in the transaction or benefit from its proceeds. We may be required by legal process to pay all the funds in a multiple party account to satisfy a judgment against any or all accountholders. Finally, as noted above, one multiple party accountholder accepting and/or acknowledging, as appropriate, this Agreement, Sallie Mae’s Privacy Notice and Sallie Mae Bank’s Electronic Communication Disclosure Information and Consent or any other account documentation represents affirmative acceptance of these agreements and documents by all accountholders.


3. Custodial and Guardianship Accounts: Custodians for the benefit of a minor may establish Accounts under the Utah Uniform Transfers to Minors Act, Utah Code § 75-5a-101 et seq., as amended from time to time. Upon the death or resignation of the custodian, a successor custodian will be appointed in accordance with the donor’s instructions or applicable law. We may act, in good faith and without a court order, on the instructions of or otherwise deal with any person purporting to make a transfer or purporting to act in the capacity of a custodian. In the absence of knowledge, we are not responsible for determining the validity or propriety of the purported custodian’s designation, any act of the purported custodian, any instrument or instructions executed or given by the person purporting to make a transfer or the application of any property of the minor delivered to the purported custodian. Guardians may also establish Accounts for the benefit of persons under their guardianship. Guardians must provide us with a copy of the document establishing the guardianship appointment in order to open the Account, and we will honor the terms and conditions of the appointment.
   


b. Verifying Your Identity – Notice Regarding the USA PATRIOT Act

IMPORTANT INFORMATION ABOUT PROCEDURES FOR OPENING A NEW ACCOUNT

To help the government fight the funding of terrorism and money laundering activities, Federal law requires all financial institutions to obtain, verify, and record information that identifies each person who opens an Account. What this means for you: When you open an Account, we will ask for your name, address, date of birth and other information that will allow us to identify you. We may also ask to see your driver’s license or other identifying documents.

c. Verifying Your Eligibility – Notice regarding Consumer Reporting Agency and Other Information

In connection with verifying your identity and eligibility for the Account(s), we may review your consumer report, credit history or other information. By asking us to open an Account, you authorize us to obtain a consumer report, credit history information or other information to process your Account request or for any other legitimate purpose. To be eligible for an Account, you must have a physical address in the United States among other requirements. We reserve the right to decline your Account request if we are not able to fully verify your personal information. We may also report the status of or the closure of your Account to such consumer reporting agencies.

d. Requiring Taxpayer ID Numbers and Backup Withholding Certification

Under federal law, we are required to have a correct Taxpayer Identification Number (TIN) for every Account. Also, under federal law, you are required to certify that you are not subject to backup withholding. Without that certification, we are required to either withhold a percentage of interest paid as provided for under the Internal Revenue Service (IRS) backup withholding regulations or to close the Account. We will report any amounts we may withhold to the IRS as a tax credit and on your year-end IRS Form 1099-INT Interest Income Statement.

3. Deposits/Balance

a. Minimum Deposit/Minimum Balance

There is no minimum deposit required to open an Account. There is also no minimum balance requirement. However, if you open an Account that remains dormant, with a balance of under $1, we reserve the right to close the Account.

b. Check and Electronic Deposits

You may deposit funds into your Savings Account at any time online at https://banking.salliemae.com or by phone at 877-346-2756 (877-3GO-2SLM). You may fund your CD at any time online at https://banking.salliemae.com or by phone at 877-346-2756 (877-3GO-2SLM). Currently, funding is strictly limited to check funding and electronic deposits, which include electronic funds transfers, such as automated clearing house (ACH) transactions and must be made in U.S. Dollars.

With respect to check funding, we will not accept certain types of checks, such as third party and starter checks. We may elect to process your check through an electronic check conversion. This means that when you provide a check as payment, you authorize us either to use information from your check to make a one-time electronic fund transfer from your account or to process the payment as a check transaction.

c. Account Opening – Initial Hold

In order to ensure that we have properly verified your identity and the identities of others associated with your Account as required by federal law, we will place a temporary hold on your deposits until we have completed our verification procedures. For your initial deposit, we will be holding funds for ten (10) business days, unless a longer hold is required to verify your identity and eligibility. For additional information regarding funds availability timeframes, see the “Funds Availability” section below.

4. Linked Accounts

a. Linking to Accounts at Other Financial Institutions

You may link your Account with Sallie Mae Bank to a deposit account you have with another bank. You can do this online when you establish your Account with us or anytime during the life of your Account. Any account you link to your Sallie Mae Bank Account must be with a bank chartered in the U.S.

b. Transferring Upromise Earnings into the Sallie Mae Bank Savings Account

Upromise, Inc., an affiliate of Sallie Mae Bank, offers a rewards service that enables its members to earn money for college when they make eligible everyday purchases with participating companies. If you join Upromise, the money you earn in your Upromise account can be automatically transferred into your Savings Account on a periodic basis (subject to minimum transfer requirements). To link your Upromise account with your Savings Account, you must be a Upromise member. Joining is free. Go to upromise.com/deposits to learn more.

Terms and conditions apply. Participating companies, contribution levels and terms and conditions are subject to change at any time without notice.

5. FDIC Insurance

Funds deposited in an Account at Sallie Mae Bank are insured up to the applicable limit by the Federal Deposit Insurance Corporation (“FDIC”). The amount of insurance coverage available to you depends on the number of Accounts you have with us and the ownership of those Accounts. For additional information, you may visit the FDIC’s website at www.fdic.gov.

6. Funds Availability

Funds you deposit in an Account will become available to you in accordance with the timeframes set forth in this section. Between the time that you deposit the funds and the funds become available to you, you may not withdraw the funds in cash and we will not use the funds to pay withdrawals or debits that you have authorized or made from your Account.

For your initial deposit whether made by check or electronically, funds will be held for ten (10) business days unless a longer hold is required per the verification procedures referred to in the “Account Opening – Initial Hold” section above. For all subsequent deposits made by check or electronically in the amount of $5,000 or less, funds will be held for five (5) business days from the effective date for those funds, which is the day that we credit your Account for that deposit. For all subsequent deposits made by check or electronically in excess of $5,000, funds will be held for ten (10) business days from the effective date for those funds, which is the day that we credit your Account for that deposit. To the extent permitted by law, Sallie Mae Bank reserves the right to extend these timeframes for certain reasons, including if we suspect fraud. In addition, funds in an Account being closed may be subject to a brief temporary hold in order to allow outstanding transactions to clear and for any necessary processing procedures to be performed.

All deposits accepted from you are subject to verification. Your Account will be credited for the amount shown on your account statement. Adjustments for errors in addition or subtraction may be posted to your Account. Your Account also may be adjusted for items you have deposited that we determine require special handling (e.g., verification of prior endorsements).

7. Withdrawals/Transfers

a. General

For all Accounts, you can request a withdrawal or transfer by using our website at https://banking.salliemae.com or by calling our telephone line at 877-346-2756 (877-3GO-2SLM). A request for a withdrawal or transfer is considered to be received on the same business day if it is received by 11:00 p.m. Eastern Time on that day.

For additional details, please refer to “Transaction Limitations” set forth under the “Truth-in-Savings Disclosures” section below that applies to the Account type you have chosen.

b. Insufficient Funds

You may not make withdrawals in excess of the funds available in your Account, which includes the Account balance less any holds applicable to funds deposited into your Account. We will not be liable for dishonoring any withdrawals that would exceed the available funds in your Account. If we receive a withdrawal, transfer or related request and there are insufficient funds in your Account to pay the item, we will either return the item unpaid or pay the item and create an overdraft in your Account. If we pay the item and allow for an overdraft, we may hold balances in other Accounts that you may have with us until the overdraft is paid and you may be assessed a fee for the transaction. In addition, if we choose to honor a request that overdraws your Account, you agree to promptly reimburse us for the amount of the overdraft along with applicable service fees, accrued interest, collection fees, and/or legal fees, if any. If we pay items by overdrawing your Account, we are not obligated to continue paying overdrafts in the future. We will process withdrawals, transfers or related requests received on the same day in the order we choose. You understand that we have no obligation to minimize the service fees or interest, if any, charged as a result of any overdraft and that the processing order we select may result in your incurring more fees than you would if we were to process the withdrawals, transfers or related requests in a different order.

c. Notice of Intent to Withdraw or Transfer Funds

Sallie Mae Bank reserves the right to require at least seven (7) days prior written notice of your intent to withdraw or transfer funds from your Account.

8. Truth-in-Savings Disclosures

a. High-Yield Savings Account

Minimum Balance to Open the Account . As noted above, there is no minimum deposit required to open a Savings Account.

Rate Information . The current interest rate and Annual Percentage Yield (APY) on your Savings Account will be disclosed on our website (https://banking.salliemae.com) and on your Account statement. The interest rate and APY are established at our discretion and, as permitted by law, are variable and subject to change at any time without notice to you. Our APY rates assume that interest earned in your Savings Account remains on deposit. A withdrawal from your Savings Account will reduce earnings.

Compounding Frequency . The interest rate on your Savings Account will be compounded daily on a 365/365 basis (366/366 in leap years).

Crediting Frequency . Interest will be credited to your Savings Account on the monthly cycle date.

Daily Balance Computation Method . We use the daily balance method to calculate the interest on your Savings Account. This method applies a daily periodic rate to the principal balance in the Account on each day.

Accrual of Interest on Deposits . Interest in your Savings Account will begin to accrue on the business day the deposit is received. If a deposit is received before 11:00 PM Eastern Time on a business day we are open, we will consider that day to be the day of your deposit. If your deposit is received after 11:00 PM Eastern Time or on a day we are not open, we will consider that the deposit was received on the next business day we are open.

Effect of Closing an Account. If you close your Savings Account before interest is credited, you will receive the accrued interest.

Transaction Limitations . Withdrawals may be made by electronic funds transfer only, and ACH withdrawals are subject to NACHA, ACH and other applicable rules. During any calendar month or statement cycle of at least four weeks, you may make no more than six (6) transfers and withdrawals, or a combination thereof, to another account of yours with us, or directly to us, or to a third party by means of a preauthorized or automatic transfer, or telephonic (including data transmission) agreement, order or instruction, or by check, draft, debit card, or similar order made by the depositor and payable to third parties. You are not limited in the number of transfers that you may make out of your Savings Account to repay loans at Sallie Mae Bank. A preauthorized transfer includes any arrangement to pay funds from your Savings Account to a linked account at a predetermined time, on a fixed schedule, or upon oral or written orders received through the initiating person or by mail. You may also authorize another institution or person to initiate preauthorized transfers from your Savings Account on your behalf. If, however, you repeatedly exceed the transfer limitation set forth above, Sallie Mae Bank reserves the right to close your Savings Account at our discretion or to convert your Savings Account to a transactional account. Sallie Mae Bank may refuse any withdrawal request that you attempt on forms not approved by us or by any method we do not specifically permit. Further, Sallie Mae Bank may refuse any withdrawal request that is greater in number than the frequency permitted, or which is for any amount that exceeds any withdrawal limitations. We will use the date the withdrawal is completed by us (as opposed to the date you initiate it) to apply the frequency limitations. See the “Funds Availability” section above for information about when you can withdraw funds you deposit.

b. Certificate of Deposit

Minimum Balance to Open the Account . There is no minimum deposit required to open a CD.

Rate Information . The current interest rate and Annual Percentage Yield (APY) on your CD will be disclosed on our website https://banking.salliemae.com) and on your Account statement. The interest rate is fixed and is established when your CD is opened. You will be paid this rate until first maturity. Our APY rates assume that interest earned in your CD remains on deposit until maturity. A withdrawal from your CD will reduce earnings.

Compounding Frequency . The interest rate on your CD will be compounded daily on a 365/365 basis (366/366 in leap years).

Crediting Frequency . The interest earned on your CD will be credited to your Account on a monthly basis.

Daily Balance Computation Method . We use the daily balance method to calculate the interest on your CD. This method applies a daily periodic rate to the principal balance in the Account each day.

Accrual of Interest on Deposits . Interest in your Account begins to accrue on the business day the deposit is received. If the deposit is received before 11:00 PM Eastern Time on a business day we are open, we will consider that day to be the day of your deposit. If your deposit is received after 11:00 PM Eastern Time or on a day we are not open, we will consider that the deposit was received on the next business day we are open.

Effect of Closing an Account. If you close your CD before interest is credited, you will receive the accrued interest.

Transactions Limitations . You will not be permitted to make any additional deposits into your Account before maturity. You may, subject to penalty, make withdrawals of principal from your Account before maturity. Principal withdrawn before maturity is included in the amount subject to early withdrawal penalty. You can withdraw interest accrued and credited to your CD before maturity at any time without penalty. However, the APY assumes interest remains on deposit until maturity and a withdrawal will reduce earnings.

Penalties for Early Withdrawal . As noted above, a penalty will be imposed for withdrawals of principal before maturity. If your CD has an original maturity of 12-months or less, the penalty we impose will equal 3-months simple interest on the amount withdrawn subject to penalty. If your CD has an original maturity greater than 12-months, the penalty we impose will equal 6-months simple interest on the amount withdrawn subject to penalty.

If the amount required to be forfeited is greater than the interest earned or paid on your CD, we will deduct the difference from principal. In certain circumstances, such as the death or incompetence of an Account owner, the law permits, and in some cases requires, the waiver of the early withdrawal penalty.

Automatic Renewal . Your CD automatically renews at maturity. At maturity, you will have a ten (10) calendar day grace period (which begins on the first day of maturity and includes the following nine (9) days) in which you can withdraw funds from your Account without penalty. You may prevent renewal if you withdraw the funds in your CD at maturity or within the grace period, or if we receive notice from you within the grace period. You may notify us by telephone at 877-346-2756 (877-3GO-2SLM). If you prevent renewal of your CD, interest will accrue until the day within the grace period that you withdraw your funds or that we receive notice. Each renewal term will be the same as the original term, beginning on the maturity date. We will set the interest rate on your renewing CD at our discretion. To determine your rate on renewal, please check our rate schedule available online at https://banking.salliemae.com.

9. Fees and Charges

The fees set forth below will be charged, as applicable, to your Account. You agree that these fees may be deducted from the amount in your Account.

Excessive Transaction Fee – $10 (The “Truth-in-Savings” section applicable to your Account(s) sets forth transaction limitations.)
Returned Deposit Fee – $5
Paper Statement/Statement Copy Fee – $5 per statement

The Bank will not be liable for the dishonor of any transaction resulting from deduction of fees from an Account.

10. Electronic Fund Transfer Services

Sallie Mae Bank may provide you with electronic funds transfer or EFT services, including direct deposits into your Account, preauthorized transfers from your Account and telephone transfers. For these services, you authorize us to charge and deduct from your Account any and all charges applicable to the EFT service(s) we provided to you. Applicable fees are disclosed in the “Fees and Charges” section of this agreement. In addition, the rules set forth in the “Withdrawals/Transfers” section above under “Insufficient Funds” are applicable to any EFT service we may offer and the “Truth-in-Savings” section applicable to your Account(s) sets forth transaction limitations. We offer each of the EFTs described below.

Transfers Online. You may transfer funds to and from your Account online at https://banking.salliemae.com.

Preauthorized Payments. Subject to the limitations disclosed in this Agreement, you may arrange to have preauthorized payments made from your Account.

Other EFTs. You may perform other transactions as we expand the type of available EFTs in the future.

For security reasons, we may place limitations on the number and dollar amounts of EFTs that you may perform.

a. Stopping Preauthorized Payments

Right and Procedure to Stop Preauthorized Payments . To stop payment on a single payment in a series of recurring preauthorized payments, or to discontinue a recurring preauthorized payment entirely, you should contact the merchant, allowing adequate time for that party to cancel the payment and for us to implement the cancellation request (which typically may take up to several days). We are not responsible for any failure by a merchant to stop a payment or for your failure to notify the merchant in time to stop any given payment. In addition, if you have instructed the Bank to make regular payments from your Account, you can stop these payments by calling us at 877-346-2756 (877-3GO-2SLM) or by writing to us at P.O. Box 30531, Tampa, FL 33630-3531. We must receive your request at least three (3) business days before the payment is scheduled to be made. Your stop payment request must include the exact dollar amount of the payment. In addition, if you call, we may require that you put your request in writing and get it to us within fourteen (14) calendar days after you call.

Refusal to Pay a Preauthorized Transfer . If, because your Account has insufficient funds to cover a transfer, Sallie Mae Bank refuses to make a preauthorized transfer, we will mail or deliver to you, on or before the next business day, notice of our refusal to pay the transfer.

Notice of Varying Amounts . If regular preauthorized payments vary in amount, the institution or person that you are going to pay is required to inform you ten (10) calendar days before each payment, when the payment will be made and the amount of the payment. Applicable rules allow you to elect to receive such notice only when the payment would differ by more than a certain amount from the previous payment, or when the amount would fall outside certain limits set by you.

Preauthorized Credits (Direct Deposits) . If you have arranged to have direct deposits made to your Account at least once every sixty (60) calendar days from the same institution or person, the institution or person making the deposit will tell you most every time they send us the money. You may also call us at 877-346-2756 (877-3GO-2SLM) or check your Account online at https://banking.salliemae.com to find out whether or not the deposit has been made.

b. Telephone Transfers

You may make transfers via the customer service call center at 877-346-2756 (877-3GO-2SLM).

c. Your Liability for Unauthorized Transfers and Your Responsibility to Report Issues to Us

In case of errors or questions about your electronic transfers, call us at 877-346-2756 (877-3GO-2SLM), write us at P.O. Box 30531, Tampa, FL 33630-3531 or e-mail us by logging in to your Account at https://banking.salliemae.com as soon as you can, if you think your statement or receipt is wrong or if you need more information about a transfer listed on the statement or receipt. We must hear from you no later than sixty (60) days after we sent the FIRST statement on which the problem or error appeared. When contacting us for such purposes, we ask that you:

• Tell us your name and Account number (if any);
• Describe the error or the transfer you are unsure about, and explain as clearly as you can why you believe it is an error or why you need more information; and
• Tell us the dollar amount of the suspected error.

If you tell us orally, we may require that you send us your complaint or question in writing within ten (10) business days.

We will determine whether an error occurred within ten (10) business days after we hear from you and will correct any error promptly. If we need more time, however, we may take up to forty-five (45) days to investigate your complaint or question. If we decide to do this, we will credit your Account within ten (10) business days for the amount you think is in error, so that you will have the use of the money during the time it takes us to complete our investigation. If we ask you to put your complaint or question in writing and we do not receive it within ten (10) business days, we may not credit your Account.

For errors involving new Accounts, point-of-sale, or foreign-initiated transactions, we may take up to ninety (90) days to investigate your complaint or question. For new Accounts, we may take up to twenty (20) business days to credit your Account for the amount you think is in error.

We will tell you the results within three (3) business days after completing our investigation. If we decide that there was no error, we will send you a written explanation. You may ask for copies of the documents that we used in our investigation.

d. Our Liability for Failure to Transfer

If we do not complete a transaction to or from your Account on time or in the correct amount according to our Agreement with you, we may be responsible for losses or damages. However, there are some exceptions. We will not be liable if:

• Through no fault of ours, you do not have sufficient funds in your Account to complete the transaction, including if there is a hold on your funds;
• The automated teller machine where you are making the transfer does not have enough cash;
• The transfer would go over the credit limit on your overdraft line;
• Circumstances beyond our control (such as fire, flood or computer or communication failure) prevent the completion of the transaction, despite reasonable precautions that we have taken;
• The terminal or system was not working properly and you knew about the breakdown before you started the transaction;
• The funds in your Account are subject to legal process, other legal restrictions, or right of set-off;
• We have reason to believe the requested transaction is unauthorized, including for fraud and related concerns; or
• For any other exceptions in our agreement with you.


e. Disclosure of Account Information to Third Parties

In order that your privacy may be protected, we will only disclose information to third parties about your Account or the transfers you make:

1. Where it is necessary for completing transfers;
2. In order to verify the condition and existence of your Account for a third party, such as a credit bureau or merchant;
3. In order to comply with government agency or court orders;
4. To our employees, auditors, service providers, attorneys or collection agents in the course of their duties;
5. As disclosed in Sallie Mae’s Privacy Notice; or
6. If you give us your permission.


f. Termination

We reserve the right to terminate your use of our EFT services for any reason and at any time without notifying you. You also have the right to terminate your use of the EFT services described in this Agreement at any time online at https://banking.salliemae.com or by calling us at 877-346-2756 (877-3GO-2SLM) at any time during our normal business hours, or writing to us at P.O. Box 30531, Tampa, FL 33630-3531.

If you call, we may require you to put your request in writing and get it to us within fourteen (14) calendar days after you call. If you terminate your use of our EFT services and you have arranged for preauthorized transfers involving third parties, you are required to inform any third parties that the transfers will cease. Any termination of your use of our EFT services, whether initiated by you or us, will not affect any of your or our rights and obligations under this Agreement that have arisen before the effective date of such termination.

11. Protecting Your Privacy

The privacy and security of your information is important to us. As noted above, Sallie Mae’s Privacy Notice is available on our website at the following location: http://www.salliemae.com/about/privacy_practices.htm.

12. Periodic Statements

Statements in electronic format will be made available at no charge. You may view your statement by accessing your Account at https://banking.salliemae.com. You may choose to have a paper statement mailed to you. However, there may be a fee for this service as set forth in the “Fees and Charges” section above.

13. Closing an Account

You can close your Account at any time, for any reason. We can close your Account at any time, for any reason and without advance notice. If you close a CD before maturity, you will be subject to an early withdrawal penalty. In addition, as mentioned in the “Funds Availability” section above, funds in an Account being closed may be subject to a brief temporary hold in order to allow outstanding transactions to clear and for any necessary processing procedures to be performed. If your Account is closed, be sure you cancel any preauthorized payments as set forth in the “Electronic Funds Transfer Services” section above under “Stopping Preauthorized Payments.”

14. Unclaimed Property Laws

State laws require us to close all your deposit accounts and transfer your money to the state if your accounts are dormant for a certain period of time. If your account becomes dormant, we may try to locate you at the address and telephone number shown in our records. After a specified period of time, if we are still not able to locate you, we will be required to surrender the funds in the account to the state, in accordance with state law, as unclaimed property. If this occurs, you may be able to reclaim them, but you may be required to apply to the state for return of your funds. To the extent permitted by law, we may charge you a reasonable service charge for processing unclaimed property. Once your funds are surrendered, we no longer have any liability or responsibility with respect to the funds.

15. Assignment/Transferability

No part of an Account may be pledged, assigned, given as a gift, or otherwise transferred to a third party without our prior written consent.

16. Notice and Cure

Prior to initiating a lawsuit or arbitration regarding a legal dispute or claim relating in any way to this Agreement or your Account (a “Claim”), the party asserting the Claim (the “Claimant”) shall give the other party written notice of the Claim (a “Claim Notice”) and a reasonable opportunity, not less than thirty (30) days, to resolve the Claim. Any Claim Notice to you will be sent in writing by mail to the address you have provided us (or any updated address you have subsequently provided to us). Any Claim Notice to us shall be sent by mail to the following address: Sallie Mae Bank, Attention Chief Compliance Officer, 5217 South State Street, Suite 210, Murray, UT 84107. Any Claim Notice you send must give your Account number(s), address and telephone number. Any Claim Notice must explain the nature of the Claim and the relief that is demanded. The Claimant must reasonably cooperate in providing any information about the Claim that the other party reasonably requests.

17. Jury Trial Waiver

TO THE EXTENT PERMITTED BY LAW, YOU AND WE WAIVE ANY RIGHT TO TRIAL BY JURY IN THE EVENT OF LITIGATION ARISING OUT OF OR RELATED TO THESE RULES OR YOUR ACCOUNT. THIS JURY TRIAL WAIVER SHALL NOT AFFECT THE JURY TRIAL WAIVER IN THE ARBITRATION PROVISION (IF YOU DO NOT REJECT IT).

18. Credit Reporting/Notice of Inaccurate Reporting or Identity Theft

We have the right to report information about your Account to any consumer reporting agency. If you believe that any information that we have furnished to a consumer reporting agency in connection with your Account is inaccurate, or if you believe that you have been the victim of identity theft in connection with your Account, write to us at the following address: P.O. Box 30531, Tampa, FL 33630-3531. In your letter be sure to include:

1. Your name, address and Account number(s);
2. A description of the specific information that is being disputed;
3. An explanation of the basis for the dispute;
4. A copy of any supporting documentation you have that substantiates the basis of the dispute; and
5. If you believe that you have been the victim of identity theft, submit an identity theft affidavit and an identity theft report (e.g., police report, postmaster general report, etc.).


19. Claims of Third Parties and Legal Action Taken Against Your Account

Except as otherwise provided herein, we are not required to recognize any claim to your Account, or any claim of authority to exercise control over your Account, made by a person or persons other than you or an individual you have authorized to access the Account pursuant to a written agreement, in a form and content acceptable to us, on file with us. If an attachment, garnishment, levy, order, decree or other state or federal legal process (“Legal Process”) is brought against your Account, we may refuse to permit or we may limit withdrawals or transfers from your Account until the Legal Process is satisfied or dismissed. If we receive any document that appears or is purported to be Legal Process issued out of any court or governmental agency, you hereby authorize us to accept and comply with it, no matter how it was received by us. You hereby direct us not to contest on your behalf any such document or Legal Process and to comply with such process as we determine to be appropriate in the circumstances without liability of us to you, even if the Legal Process or document purports to affect the interest of only one owner of a multiple party account and even if any funds we may be required to pay out leave insufficient funds to pay a check you have written or any other withdrawal or debit you have authorized or initiated. If we incur any damages, losses, costs or expenses, including, without limitation, reasonable attorneys’ fees, in connection with any such document or Legal Process, you are liable to us in such amount and we may (i) charge any expenses and fees to your Account or any other account you may have with us without prior notice to you, (ii) bill you directly for such expenses and fees or (iii) to the extent permitted by law, deduct such expenses and fees from the amount levied. Any garnishment, attachment or other levy against your Account is subject to our right of setoff.

20. Remotely Created Checks

If you deposit any “remotely created check,” as defined in Federal Reserve Regulation CC, 12 C.F.R. § 229.2(fff), as amended from time to time, then you represent and warrant to us that the holder of the account upon which it is drawn authorized the issuance of the check for the amount and to the payee shown on the check. If anyone claims otherwise, you agree that we may immediately charge the amount of such check, plus any claimed interest, costs and damages, against your Account. If there are insufficient funds in your Account to cover the amount of that charge, we will treat the deficiency as an overdraft. You agree to indemnify us against, and hold us harmless from, any and all damages, losses, costs and expenses we incur in connection with any claim that a remotely created check was not properly created or deposited in your Account, including consequential and punitive damages, and our own reasonable attorneys’ fees and costs in investigating and responding to any claims, whether or not litigation results.

21. Waiver of Liability

Unless we have acted in bad faith or are otherwise prohibited by applicable law, we will not be liable to you for performing or failing to perform services under or in connection with this Agreement. Without limiting the foregoing, we will not be liable for delays or mistakes that happen due to reasons beyond our control, including, without limitation, acts of civil, military or banking authorities, national emergencies, insurrection, war, riots, acts of terrorism, failure of transportation, communication or water supply, or malfunction of or unavoidable difficulties with our equipment. If a court finds that we are liable to you for what we did or did not do under or in connection with this Agreement, you may recover from us only your actual damages, in an amount not to exceed the total interest paid by us to you under and in connection with this agreement during the six-month period immediately preceding the event giving rise to our liability. You agree that the dollar limitation described in the preceding sentence is reasonable, to the extent permitted by applicable law. In no event will we be liable for consequential damages (including lost profits), extraordinary damages, or special or punitive damages.

22. Claims Against Your Account

If we receive a claim against funds in your Account, or if we know of or believe that there is a dispute over the ownership or control of funds in your Account, we may place a hold on your Account. We can also refuse to pay out any of your funds until we are satisfied that the dispute is settled. In addition, we may close the Account and send the balance to the accountholder(s) we have on record; decide to rely on our current account records; require a court order to act; or take any other action that we feel will protect us. We will not be liable to you for taking any such action.

23. No Fiduciary Obligation

Sallie Mae Bank assumes no fiduciary obligation on your behalf. This means that we do not act as your trustee or financial advisor, and we do not assume any responsibility for your Account beyond reasonable care.

24. Choice of Law and Applicable Laws and Rules

This Agreement (excluding the Arbitration Agreement) will be governed by the law of the State of Utah except to the extent governed by federal law. Your Account is also subject to applicable operating circulars and customs of any clearinghouse or other association involved in transactions.

25. Bank Legal Rights

We do not waive our rights by delaying or failing to exercise them at anytime.

26. Right to Set-Off

By opening an Account with Sallie Mae Bank, you agree that we have the right to set off with respect to your Account(s). If you owe Sallie Mae Bank or any of its affiliates’ money and that money is due, you agree that we may withhold or withdraw from your Account any amounts you owe to us or any of our affiliates. We may exercise our rights of set-off without recourse to other collateral, if any, and even if our action causes you to lose interest, incur an early withdrawal penalty or any other consequence. If we exercise our right of set-off, we will notify you to the extent required by applicable law. Except to the extent prohibited by applicable law, we may set off all of the funds in a multiple party account to pay money owed to us by any owner of the multiple party account, irrespective of who contributed funds to the multiple party account. Our failure to demand payment does not waive our rights hereunder. See also the “Withdrawals/Transfers” section above regarding “Insufficient Funds.”

27. Enforceability/Severability

If any provision of this Agreement shall be determined to be invalid or unenforceable under any rule, law, or regulation of any governmental agency (local, state, or federal), the validity or enforceability of any other provision of this Agreement shall not be affected.

28. Telephone Monitoring

You agree that your telephone calls with us may be monitored and recorded for quality assurance and security purposes.

29. Death of an Accountholder

If you die or are declared legally incompetent, we can continue to accept and process deposits to your Account until we have actual notice of the death/incompetency and have a reasonable chance to act. Upon notification, we will freeze individual accounts (disallowing any withdrawals or transfers); multiple party accounts may remain unfrozen for up to thirty (30) days after we have been notified of the death of an accountholder. By law, certain documents must be presented to us before funds in such an Account can be paid out and the Account closed. These documents may include: a certified copy of the death certificate; letters testamentary or letters of administration; decrees of probate court; and documents evidencing that estate taxes are paid or not owed; if applicable. Additional documents may be required depending on the ownership of the Account.

30. Attorney in Fact/Fiduciary or Agency Account

Any individual acting as attorney-in-fact, agent, guardian, personal representative, trustee, custodian or fiduciary (collectively, an “agent”) must be designated as such on our records; otherwise, we will not honor the account instructions of that individual regarding your Account. By requesting that an individual be designated as your agent on our records, you authorize us to honor account instructions of your agent regarding your Account until we receive actual notice that the agency or fiduciary relationship has been terminated or actual notice of death or incompetency. No such notice is effective until we have had a reasonable opportunity to act on it. We will not be liable to you in any way if your agent misapplies any of the funds from your Account. We have the right to review and retain a copy of any power of attorney, agency agreement, trust agreement, court order or other document that has established the agency or other fiduciary relationship.

31. Amendment, Cancellation and Change in Terms

The Bank may amend or cancel this Agreement at any time in accordance with applicable law. Amendments to this Agreement will be communicated to you in a manner consistent with applicable law. Also, this Agreement, as amended will be made available on our website.

32. ARBITRATION

You agree that either party may elect to arbitrate – and require the other party to arbitrate – any Claim under the following terms and conditions.

1. RIGHT TO REJECT: You may reject this Arbitration Agreement by mailing a signed rejection notice to Sallie Mae Bank, Attention Chief Compliance Officer, 5217 South State Street, Suite 210, Murray, UT 84107 within 60 days after the date of your first disbursement. Any Rejection Notice must include your name, address, telephone number and Account number.
2. IMPORTANT WAIVERS: If you or we elect to arbitrate a Claim, you and we both waive the right to: (1) have a court or a jury decide the Claim; (2) PARTICIPATE IN A CLASS ACTION IN COURT OR IN ARBITRATION, WHETHER AS A CLASS REPRESENTATIVE, CLASS MEMBER OR OTHERWISE; (3) ACT AS A PRIVATE ATTORNEY GENERAL IN COURT OR IN ARBITRATION; OR (4) JOIN OR CONSOLIDATE CLAIM(S) WITH CLAIMS INVOLVING ANY OTHER PERSON IN COURT OR IN ARBITRATION. Other rights are more limited in arbitration than in court or are not available in arbitration. The waivers in subsections (2)-(4) above are called the “Class Action and Multi-Party Waivers.” The arbitrator shall have no authority to conduct any arbitration inconsistent with the Class Action and Multi-Party Waivers.
3. DEFINITIONS: In this Arbitration Agreement, the following definitions will apply:
   “You” and “your” refer to the person or persons to whom the Account is titled and who are authorized users on the Account as provided for in this Agreement. “We,” “us,” and “our” mean Sallie Mae Bank, our predecessors, successors, affiliates or assignees, and all officers, directors, employees, agents and representatives thereof. These terms also include any party named as a co-defendant with us in a Claim asserted by you, such as investors or potential investors, credit bureaus, credit insurance companies, closing agents, escrow agents, insurance agents, loan originators, rating agencies, loan servicers, debt collectors, loan guarantors, performance bond trustees, tuition recovery funds, the School, and any of the School’s financial aid offices or officers. “Claimant” means the party who first asserts a Claim in a lawsuit or arbitration proceeding. “Administrator” means either the American Arbitration Association (the “AAA”), 335 Madison Avenue, New York, NY 10017, www.adr.org, or JAMS, 620 Eighth Avenue, 34th Floor, New York, NY 10018, http://www.jamsadr.com/, or any other company selected by mutual agreement of the parties. If both AAA and JAMS cannot or will not serve and the parties are unable to select an Administrator by mutual consent, the Administrator will be selected by a court. You get to select the Administrator if you give us written notice of your selection with your notice that you are electing to arbitrate any Claim or within 20 days after we give you notice that we are electing to arbitrate any Claim (or, if you dispute our right to require arbitration of the Claim, within 20 days after that dispute is finally resolved). If you do not select the Administrator on time, we may do it. Notwithstanding any language in this Arbitration Agreement to the contrary, no arbitration may be administered, without the consent of all parties to the arbitration, by any Administrator that has in place a formal or informal policy that is inconsistent with the Class Action and Multi-Party Waivers.
4. "CLAIM" means any legal claim, dispute or controversy between you and us that arises from or relates in any way to the Account, including any dispute arising before the date of this Arbitration Agreement and any dispute relating to: (1) the imposition or collection of principal, interest, attorneys’ fees, collection costs or other fees or charges relating to the Account; (2) other provisions of this Terms and Conditions Agreement; (3) any application, enrollment, disclosure or other document relating in any way to this Account or the transactions evidenced by this Account; (4) any insurance or other service or product offered or made available by or through us in connection with this Account, and any associated fees or charges; (5) our methods of soliciting your business; and (6) any documents, instruments, advertising or promotional materials that contain information about this Account or any associated insurance or other service or product. This includes, without limitation, disputes concerning the validity, enforceability, arbitrability or scope of this Arbitration Agreement or the Account; disputes involving alleged fraud or misrepresentation, breach of contract or fiduciary duty, negligence or other torts, or violation of statute, regulation or common law. It includes disputes involving requests for injunctions, other equitable relief or declaratory relief. However, “Claim” does not include any individual action brought by you in small claims court or your state’s equivalent court, unless such action is transferred, removed, or appealed to a different court. Also, “Claim” does not include any challenge to the validity and effect of the Class Action and Multi-Party Waivers, which must be decided by a court.
5. STARTING AN ARBITRATION: To initiate an arbitration, we or you must give written notice of an election to arbitrate. This notice may be given after a lawsuit has been filed and may be given in papers or motions in the lawsuit. If such a notice is given, the Claim shall be resolved by arbitration under this Arbitration Agreement and the applicable rules of the Administrator then in effect. The arbitrator will be selected under the Administrator’s rules, except that the arbitrator must be a lawyer with at least ten years of experience or a retired judge, unless we and you agree otherwise.
6. LOCATION AND COSTS: Any arbitration hearing that you attend will take place in a location that is reasonably convenient to you. We will consider (and generally honor) any good faith request to bear the fees charged by the Administrator and the arbitrator. Each party must normally pay the expense of that party’s attorneys, experts and witnesses, regardless of which party prevails in the arbitration. Despite the foregoing, we will pay all such fees if you prevail in an arbitration where you are the Claimant (even if we are not required to pay such fees under applicable law) and will pay all such fees we are required to bear: (a) under applicable law; or (b) in order to enforce this Arbitration Agreement.
7. DISCOVERY; GETTING INFORMATION: Either party may obtain from the other party prior to the hearing any information available under the Administrator’s rules or any relevant information the arbitrator determines should in fairness be made available.
8. EFFECT OF ARBITRATION AWARD: Any state or federal court with jurisdiction and venue may enter an order enforcing this Arbitration Agreement, enter judgment upon the arbitrator’s award and/or take any action authorized under the Federal Arbitration Act, 9 U.S.C. §§1 et seq. (the “FAA”). For any arbitration-related proceedings in which courts are authorized to take actions under the FAA, each party hereto expressly consents to the non-exclusive jurisdiction and venue of any state court of general jurisdiction or any state court of equity that is reasonably convenient to me, provided that the parties to any such judicial proceeding shall have the right to initiate such proceeding in federal court or remove the proceeding to federal court if authorized to do so by applicable federal law. The arbitrator’s award will be final and binding, except for: (1) any appeal right under the FAA; and (2) Claims involving more than $50,000. For Claims involving more than $50,000 (including claims where the cost of any requested injunctive or declaratory relief would potentially exceed $50,000), any party may appeal the award to a three-arbitrator panel appointed by the Administrator, which will reconsider de novo any aspect of the initial award that is appealed. The panel’s decision will be final and binding, except for any appeal right under the FAA. Except as provided in Paragraph F above, the appealing party will pay the Administrator’s and arbitrator’s costs of the appeal.
9. GOVERNING LAW: This Arbitration Agreement is made pursuant to a transaction involving interstate commerce and shall be governed by the FAA, and not by any state law concerning arbitration. The arbitrator shall follow applicable substantive law to the extent consistent with the FAA, applicable statutes of limitation and applicable privilege rules, and shall be authorized to award all remedies permitted by applicable substantive law, including, without limitation, compensatory, statutory and punitive damages (subject to constitutional limits that would apply in court), declaratory, injunctive and other equitable relief, and attorneys’ fees and costs. Upon the timely request of either party, the arbitrator shall write a brief explanation of the basis of his or her award. The arbitrator will follow rules of procedure and evidence consistent with the FAA, this Arbitration Agreement and the Administrator’s rules.
10. SURVIVAL, SEVERABILITY, PRIMACY: This Arbitration Agreement shall survive termination or dormancy of your Account. If any portion of this Arbitration Agreement cannot be enforced, the rest of the Arbitration Agreement will continue to apply, provided that the entire Arbitration Agreement (other than this sentence) shall be null and void with respect to any Claim asserted on a class, representative or multi-party basis if the Class Action and Multi-Party Waivers are held to be invalid, subject to any right to appeal such holding. In the event of any conflict or inconsistency between this Arbitration Agreement and the Administrator’s rules or the Terms and Conditions Agreement governing the Account, this Arbitration Agreement will govern.
11. NOTICE OF CLAIM; RIGHT TO RESOLVE; SPECIAL PAYMENT: Prior to initiating, joining or participating in any judicial or arbitration proceeding, whether individually, as a class representative or participant or otherwise, regarding any Claim, the Claimant shall give the other party written notice of the Claim (a “Claim Notice”) and a reasonable opportunity, not less than 30 days, to resolve the Claim. Any Claim Notice you send must include your name, address, telephone number and loan or account number. Any Claim Notice must explain the nature of the Claim and the relief that is demanded. You may only submit a Claim Notice on your own behalf and not on behalf of any other party. The Claimant must reasonably cooperate in providing any information about the Claim that the other party reasonably requests. If: (i) you submit a Claim Notice in accordance with this paragraph on your own behalf (and not on behalf of any other party); (ii) we refuse to provide the relief you request; and (iii) an arbitrator subsequently determines that you were entitled to such relief (or greater relief), the arbitrator shall award you at least $5,100 (not including any arbitration fees and attorneys’ fees and costs to which you may be entitled under this Arbitration Agreement or applicable law).
12. AMENDMENT; TERMINATION: Notwithstanding any provision of the Terms and Conditions Agreement to the contrary, any amendments to or termination of this Arbitration Agreement do not apply to a Claim of which we have received written notice on or prior to the effective date of any such amendments or termination.

Sallie Mae Bank, Member FDIC. Sallie Mae and Sallie Mae Bank are registered service marks of Sallie Mae, Inc. In addition, Upromise is a registered service mark of Upromise, Inc. SLM Corporation and its subsidiaries including Sallie Mae, Inc. and Upromise, Inc. are not sponsored by or agencies of the United States of America. Copyright 2010 by Sallie Mae, Inc. All rights reserved. 01/2010