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Sallie Mae Bank's Deposit Account Terms and Conditions Agreement

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IMPORTANT — PLEASE READ CAREFULLY AND RETAIN FOR YOUR RECORDS

In establishing a High-Yield Savings Account, Certificate of Deposit or Money Market Deposit Account, you are required to indicate your agreement to and acceptance of (1) this document, Sallie Mae Bank's Deposit Account Terms and Conditions Agreement (the "Agreement"); (2) Sallie Mae's Privacy Notice, which can be accessed at https://www.salliemae.com/assets/about/SLMBank-Privacy-Policy.pdf; and (3) Sallie Mae Bank's Electronic Communication Disclosure Information and Consent, which is located at https://www.salliemae.com/banking/terms/rd/ecd.

This Agreement is a contract between you and Sallie Mae Bank that sets forth the terms and conditions under which the Sallie Mae Bank High-Yield Savings Account, Sallie Mae Bank Certificate of Deposit or Sallie Mae Bank Money Market Account (each of which is an "Account") is made available to you. By indicating your acceptance of this Agreement and the Privacy Notice and by establishing, using or continuing to have an 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 "Truth-in-Savings and Fees" 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 your Account. 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
    1. Definitions for Sallie Mae Bank Deposit Products

      "ACH Debit" – An electronic funds transfer, initiated at Sallie Mae Bank, to withdraw funds from an account at another bank and deposit them to an account at Sallie Mae Bank.

      "ACH Credit" shall mean an electronic funds transfer, initiated at another bank, to withdraw funds from an account at that bank and deposit them to an account at Sallie Mae Bank.

      "Account" shall mean the deposit account product you open with Sallie Mae Bank including the Sallie Mae Bank High-Yield Savings, Sallie Mae Bank Certificate of Deposit or Sallie Mae Money Market.

      "Agreement" shall mean the Sallie Mae Bank's 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 8 below.

      "Fee Account" shall mean the account for which you are an authorized signer, and from which we may automatically debit or otherwise collect all Service fees.

      "Funding Account" shall mean the account for which you are an authorized signer, and from which we may debit or otherwise collect the funds necessary to remit the Scheduled Payment to the corresponding Payee, per your instructions.

      "Issuer" means Sallie Mae Bank.

      "MMDA" shall mean Sallie Mae's Money Market Deposit Account.

      "Privacy Notice" shall mean Sallie Mae's Privacy Notice, which governs the Bank's customer information-related operations and is located online at https://www.salliemae.com/assets/about/SLMBank-Privacy-Policy.pdf.

      "Recurring Payment" shall mean a Scheduled Payment that results in a series of payments delivered to the Payee at regular intervals per your instructions, and shall continue to do so until you cancel it or until the maximum number of payments and/or final payment date that you specified is reached.

      "Savings Account" shall mean Sallie Mae Bank's High-Yield Savings Account.

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

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

    2. 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.
    3. 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 SallieMae.com/Banking 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.
    4. 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 an Account through our online application process at SallieMae.com/Banking. 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. If you open your account through our website, we will place a temporary hold on your account, which means that any funds that are transferred to your account with us will not be available to you, in accordance with our Funds Availability Schedule (Section 5).
    1. Types of Account Ownership
      There are various ways in which Account ownership can be established are described below. Sallie Mae, at its sole discretion, may (i) change or limit the types of Accounts that it opens, (ii) limit the ways in which Account ownership can be established for a particular type of account, and (iii) may require you to close an Account that was previously opened if Sallie Mae decides to no longer offer that type of Account. If Sallie Mae does require the closure of an Account it will provide you with any notice required by applicable law.
      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. If you have designated this Account, as appropriate, in the Account documentation as a joint or trust account (including a Payable on Death (P.O.D.) Account as described further below) 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. A beneficiary of a multiple party account, such as a trust of P.O.D. account, is not considered to be a party to multiple-party accounts and does not possess a present right to draw upon funds from the account. 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 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. Payable on Death (P.O.D.) Accounts: You may designate your Account, as appropriate, in the Account documentation as a pay-on-death ("P.O.D.") (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"). If you do so, then this Account is a multiple-party account subject to the UTMPAL (even if you are the only party on the Account). P.O.D. payees of P.O.D. accounts, as set forth in the UTMPAL, are not parties to multiple-party accounts and a P.O.D. account belongs to the original payee(s) during the original payee(s) lifetime and not to the P.O.D. payee(s). P.O.D. accounts, like all multiple party accounts, may have multiple beneficiaries and multiple depositors associated with a single P.O.D. account and will be subject to the terms and conditions of multiple party accounts set forth above and generally in this Agreement.
    2. 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.
    3. 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. Based on this review, we may open an Account for you, but you may not be eligible for some Account features, and we may limit your ability to make certain types of transfers to and from your Account. 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.
    4. 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
    1. Minimum Deposit/Minimum Balance
      The minimum deposit required to open a Certificate of Deposit is $2,500. For non-CD accounts, there is no minimum deposit required to open an Account, and 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.
    2. Check and Electronic Deposits
      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. Sallie Mae does not accept Cash or Money Orders for deposit.
      With respect to check funding, we will not accept certain types of checks, such as third party and starter checks. (3rd party checks are checks not made initially payable to our account owner.) We may elect to process your check through an electronic check conversion. This means that when you provide a check to deposit, you authorize us either to use information from your check to make a onetime electronic fund transfer from your account or to process the payment as a check transaction.
    3. 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. Please refer to the Funds Availability Schedule (Section 5) for additional details.
    4. Linked Accounts
      1. Linking to Accounts at Other Financial Institutions
        You may link your Account with Sallie Mae 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 Account must be with a bank chartered in the U.S.
      2. Transferring Upromise Earnings into the Sallie Mae Savings Account
        Upromise, Inc., an affiliate of Sallie Mae, 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-join to learn more. Terms and conditions apply. Participating companies, contribution levels and terms and conditions are subject to change at any time without notice.
  4. FDIC Insurance
    Funds deposited in an Account at Sallie Mae 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.
  5. Funds Availability Schedule
    Our policy is to delay the availability of funds from your check deposits. During the delay, you may not withdraw the funds in cash and we will not use the funds to pay checks that you have written.
    1. Savings, MMDA and CDs
    2. Funds you deposit in an Account will become available to you in accordance with the timeframes set forth in this section. Please view our funds availability schedule for Savings, Money Market and Certificate of Deposit accounts below. 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. All funds electronically deposited after 3:00 PM ET via remote deposit capture will be considered received on the next business day and will be subject to standard hold times from such date of receipt.
      1. Deposit Holds
        For all 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 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.

        Hold times:*


        Deposit Amount: $5,000 or Less
        New Account: 10 Business Days
        Existing Account: 5 Business Days

        Deposit Amount: Greater than $5,000
        New Account: 10 Business Days
        Existing Account: 10 Business Days

      2. New Account Deposit Holds
        For all deposits made by check or electronically during the first 30 days after account opening, 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.
        For all accounts, ACH Credits and funds transferred from another of your accounts at Sallie Mae will be available immediately.

        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).
  6. Withdrawals/Transfers
    1. General
      For all Accounts, you can request a withdrawal or transfer by using our website at SallieMae.com/Banking 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.
      Sallie Mae reserves the right to require at least seven (7) days advance notice of any withdrawals of funds by any means from your Account.
      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.
    2. 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. We process withdrawals and transfers in the order in which we receive them. If we receive a withdrawal, transfer or related request and there are insufficient funds in your Account to pay the item, we will return the item unpaid and you may be charged an Insufficient Funds (NSF) fee. 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. In addition, if we honor a request that overdraws your Account, you agree to promptly reimburse us for the amount of the overdraft along with applicable NSF fees, collection fees, and/or legal fees, if any. If we pay items that overdraw your Account, we are not obligated to continue paying overdrafts in the future.

      If you repeatedly present items for payment when you have insufficient funds, we reserve the right to close your Account or, if applicable to your Account, terminate your ability to access certain features such as writing paper checks without notice.
    3. Notice of Intent to Withdraw or Transfer Funds
      Sallie Mae reserves the right to require at least seven (7) days prior written notice of your intent to withdraw or transfer funds from your Account.
  7. Truth-in-Savings Disclosures and Fees (by Account type)
    1. Savings Accounts
      Minimum Balance to Open a Savings 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 (SallieMae.com/Banking/HYSA/), on your Account statement, and can be obtained by phone by calling 877-346-2756 Monday-Friday, 8 am to 8 pm ET. 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. Interest rates are also posted on account detail pages; for these pages, any changes to interest rates are updated in the nightly processing cycle on the effective date of the change. The terms of any introductory or other special offer, including any bonus or new account rate and APY, if any, are set forth in the disclosure specific to the special offer. 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.

      Promotional Offers
      .
      From time to time, we may offer a bonus interest rate and Annual Percentage Yield (APY) for our Savings Accounts. Bonus interest rates and APYs are applicable for a limited time period only. You will be paid the bonus rate for the entire promotional period, regardless of your balance. The bonus interest rate and APY will discontinue after the promotional period and change to the Bank’s current interest rate and APY that is being offered. All non-promotional rates are variable and may change at any time. The promotion is not valid with other offers or promotions unless otherwise stated. The promotional offer, if any, will be disclosed on our website (SallieMae.com/banking/hysa/).

      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. 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 reserves the right to close your Savings Account at our discretion or to convert your Savings Account to a transactional account. Sallie Mae 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 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. There is an ACH transfer limit of $500,000 per transaction initiated from your Sallie Mae Bank account.

      Fees
      .
      The fees set forth below will be charged, as applicable, to your Account unless prohibited by applicable law. You agree that these fees may be deducted from your Account. Sallie Mae will not be liable for the dishonor of any transaction resulting from deduction of fees from your Account.
      • Returned Deposit Fee – $5
      • Paper Statement/Statement Copy Fee – $5 per statement
      • Excessive Transaction Fee – $10 for each item that exceeds the maximum number of transactions for your account (The "Truth-in-Savings" section applicable to your Account(s) sets forth transaction limitations.)
      • Wire transfers from your Sallie Mae Bank account to an account at another bank in the United States may be requested. If those transfers are completed, the account will be assessed a $20 Wire Service Fee. The Wire Service Fee only applies to outgoing transfers (it does not apply to transfers into your Sallie Mae Bank account). Note that Sallie Mae Bank will not initiate international wire transfers.
      • You may request next-business-day delivery of items that would normally be delivered by postal mail. Please note that the cutoff for next business day delivery is 2pm ET. A $15 Expedited Delivery charge will be assessed for this request.
    2. Certificates of Deposit
      Minimum Balance to Open a CD. As noted above, the minimum deposit required to open a CD is $2,500.

      Rate Information
      .
      The current interest rate and Annual Percentage Yield (APY) on your CD will be disclosed on our website (SallieMae.com/Banking/CDs/), on your Account statement, and can be obtained by phone by calling 877-346-2756 Monday-Friday, 8 am to 8 pm ET. 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. There is a transfer limit of $500,000 per transaction initiated from your Sallie Mae Bank account. To set up a CD of greater than $500,000, funds may be deposited via a wire transfer or check deposit.

      Penalties for Early Withdrawal
      .
      As noted above, a penalty will be imposed for withdrawals of principal before maturity. If your CD has a maturity of 12-months or less, the penalty we impose will equal 90 days simple interest on the amount withdrawn subject to penalty. If your CD has a maturity greater than 12-months, the penalty we impose will equal to 180 days 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 term immediately preceding the renewal, 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 SallieMae.com/Banking/CDs/.

      Fees
      .
      The fees set forth below will be charged, as applicable, to your CD unless prohibited by applicable law. You agree that these fees may be deducted from the amount in your Account.
      • Paper Statement/Statement Copy Fee – $5 per statement
      • Wire transfers from your Sallie Mae Bank account to an account at another bank in the United States may be requested. If those transfers are completed, the account will be assessed a $20 Wire Service Fee. The Wire Service Fee only applies to outgoing transfers (it does not apply to transfers into your Sallie Mae Bank account). Note that Sallie Mae Bank will not initiate international wire transfers.
      • You may request next-business-day delivery of items that would normally be delivered by postal mail. Please note that the cutoff for next business day delivery is 2pm ET. A $15 Expedited Delivery charge will be assessed for this request.
    3. MMDAs
      Minimum Balance to Open an MMDA. As noted above, there is no minimum deposit required to open an MMDA.

      Rate Information
      .
      This is a tiered, variable rate account. The interest rate, annual percentage yield (APY), and tiers may change. The interest rate and Annual Percentage Yield (APY) your money earns depend on the tier into which the end-of-day balance in your Account falls. The interest rate and APY for the appropriate tier will be paid on the full balance in the account. A tier is a range of account balances; different rates may apply to different tiers. We may change the tiers at any time. The current interest rate, Annual Percentage Yield (APY), and applicable tiers on your MMDA will be disclosed on our website (SallieMae.com/banking/money-market/). The current interest rate and APY will also be disclosed on your Account statement, and can be obtained by phone by calling 877-346-2756 Monday-Friday, 8 am to 8 pm ET. The interest rates and APYs are established at our discretion and, as permitted by law, are variable and subject to change at any time without notice to you. Interest rates are also posted on account detail pages; for these pages, any changes to interest rates are updated in the nightly processing cycle on the effective date of the change. The terms of any introductory or other promotional offer, including any bonus or new account rate and APY, if any, are set forth in the disclosure specific to the special offer. Our APY rates assume that interest earned in your MMDA remains on deposit. A withdrawal from your MMDA will reduce earnings.

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

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

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

      Accrual of Interest on Deposits
      .
      Interest in your MMDA 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 MMDA
      .
      If you close your MMDA before interest is credited, you will receive the accrued interest.

      Promotional Offers
      .
      From time to time, we may offer a bonus interest rate and Annual Percentage Yield (APY) for our Money Market Deposit Accounts. Bonus interest rates and APYs are applicable for a limited time period only. You will be paid the bonus rate for the entire promotional period, regardless of your balance. The bonus interest rate and APY will discontinue after the promotional period and change to the Bank’s current interest rate and APY that is being offered. All non-promotional rates are variable and may change at any time. The promotion is not valid with other offers or promotions unless otherwise stated. The promotional offer, if any, will be disclosed on our website ( SallieMae.com/banking/money-market/).

      Transaction Limitations
      .
      Withdrawals may be made by check and electronic funds transfer only. 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 check, preauthorized or automatic transfer, or telephonic (including data transmission) agreement, order or instruction, or by check, draft, 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 MMDA to repay loans at Sallie Mae. A preauthorized transfer includes any arrangement to pay funds from your MMDA 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 MMDA on your behalf. If, however, you exceed the transfer limitation set forth above, Sallie Mae reserves the right to close your MMDA at our discretion or to convert your MMDA to a transactional account. Sallie Mae 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 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. There is an ACH transfer limit of $500,000 per transaction initiated from your Sallie Mae Bank account.

      Fees. The fees set forth below will be charged, as applicable, to your MMDA unless prohibited by applicable law. You agree that these fees may be deducted from the amount in your MMDA. Sallie Mae will not be liable for the dishonor of any transaction resulting from deduction of fees from your MMDA. Additionally, you may not be allowed to proceed with a transaction on your MMDA, such as initiating a check reorder or a stop payment if you do not have sufficient funds in your Account to cover the cost of the transaction.
      • Paper Statement Copy Fee – $5 per statement
      • Check order placed after account opening – $5. (Check orders placed at account opening are free.)
      • Expedited check order placed after account opening – $15
      • Stop Payment – $15
      • Excessive Transaction Fee – $10 for each item that exceeds the maximum number of transactions for your account (The "Truth-in-Savings" section applicable to your Account(s) sets forth transaction limitations.).
      • Returned Deposit Fee – $5
      • Insufficient Funds (NSF) Fee – $19
      • Wire transfers from your Sallie Mae Bank account to an account at another bank in the United States may be requested. If those transfers are completed, the account will be assessed a $20 Wire Service Fee. The Wire Service Fee only applies to outgoing transfers (it does not apply to transfers into your Sallie Mae Bank account). Note that Sallie Mae Bank will not initiate international wire transfers.
      • You may request next-business-day delivery of items that would normally be delivered by postal mail. Please note that the cutoff for next business day delivery is 2pm ET. A $15 Expedited Delivery charge will be assessed for this request.
  8. Electronic Fund Transfer Services Policy
    Sallie Mae 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 reserve the right to restrict your access to any EFT service(s) based on a review of your debit history or how you use your Account. The EFT services we may offer are described below.

    Transfers Online
    . You may transfer funds to and from your Account online at SallieMae.com/Banking.

    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.
    1. 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 Sallie Mae 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 175 S. West Temple, Ste. 600, Salt Lake City, UT 84101. 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. You agree to indemnify and hold us harmless from any and all liability of any kind which may arise by reason of us acting in compliance with your directive to stop a payment from your Account.

      Refusal to Pay a Preauthorized Transfer
      .
      If, because your Account has insufficient funds to cover a transfer, Sallie Mae 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 SallieMae.com/Banking to find out whether or not the deposit has been made.
    2. Telephone Transfers
      You may make transfers via the customer service call center at 877-346-2756 (877-3GO-2SLM).
    3. Your Liability for Unauthorized Transactions, Reporting and Disputing Errors

      Your Liability for Unauthorized Transactions
      .
      Tell us AT ONCE if you believe that an electronic fund transfer has been made without your permission. To report unauthorized transfers, call us immediately at. 877-346-2756 (877-3GO-2SLM). Telephoning is the best way of keeping your possible losses down.

      Also, if your statement shows transfers that you did not make, including those made by code or other means, tell us at once. If you do not tell us within sixty (60) days after the statement was made available to you, you may not get back any money you lost after the sixty (60) days if we can prove that we could have stopped someone from taking the money if you had told us in time. If a good reason (such as a long trip or a hospital stay) kept you from telling us, we will extend the time periods.

      Error Resolution Notice
      .
      In case of errors or questions about your electronic transfers telephone us at 877-346-2756 (877-3GO-2SLM).or write us at Sallie Mae Bank, Attn: Disputes, P.O. Box 2121, Cranberry Twp, PA 16066, 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 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 also 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 do not receive your complaint or question in writing within ten (10) business days, we may not credit your Account.

      For errors involving new Accounts (an Account is considered to be a new Account for the first 30 days after opening or funds are deposited into the Account, whichever occurs later), 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.

    4. Our Liability for Failure to Complete Transactions
      If we do not complete a transfer to or from your Account on time or in the correct amount according to our Agreement with you, we will be liable for your losses or damages. However, there are some exceptions. We will not be liable, for instance:
      1. If, through no fault of ours, you do not have enough funds available in your Account to complete the transaction, including if there is a hold on your funds;
      2. If there is a hold or your funds are subject to legal process, other encumbrance restricting their use, other legal restrictions, or right of set-off;
      3. If we have reason to believe the requested transaction is unauthorized, including for fraud and related concerns;
      4. If 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; or
      5. For any other exception stated in our Agreement with you.
    5. 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.
    6. 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 SallieMae.com/Banking or by calling us at 877-346-2756 (877-3GO-2SLM) at any time during our normal business hours, or writing to us at 175 S. West Temple, Ste. 600, Salt Lake City, UT 84101.
      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.
  9. Check endorsement instructions or restrictions
    Because of our automated processing of large volumes of checks, we may not inspect or look for special instructions or "restrictive endorsements" on every check. For this reason, we are not able to honor any special instructions or be bound by a restrictive endorsement placed on checks. Further, we are not responsible for any losses, claims, damages or expenses that result from your expectation that we will honor these restrictions.
  10. Electronic check conversion
    If your account offers check-writing capability, you may authorize a merchant or other payee to make a one-time electronic payment from your money market account using information from your check to:
    • Pay for purchases
    • Pay bills
    When you provide a check as a deposit, 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 deposit as a check transaction.
  11. Consumer Debit Bureau Review
    As part of the account opening and enrollment process, we may review your banking history (including, without limitation, information regarding your credit scores, credit worthiness, or debit history) from one or more consumer reporting agencies for purposes of reviewing your Account and providing other Account features. Opening an account will not be reported to any credit bureau that provides credit reports or credit scores for lending or insurance purposes and will not impact your credit history or credit scores that lenders and insurers may use in determining whether to grant you credit or insurance.
  12. Forgeries or unauthorized signatures
    If we honor a debit request drawn on your Account that contains a forged or unauthorized signature or is altered in any way, you must notify us within 30 days of the date on which the forged, unauthorized or altered item appears on your Account statement. In the case of continuing forgeries, unauthorized signatures or alterations by the same person, you agree to notify us within 30 days of the date on which the first forged, unauthorized or altered item was provided to you. Or, if your items are not provided to you with your Account statement, then you must notify us within 30 days of the date on which we provided to you or otherwise made available to you the Account statement that contained a description of the forged, unauthorized or altered item.

    If you do not report a forged, unauthorized or altered item within the time frames listed above, this will be deemed conclusive proof that you failed to exercise reasonable care and promptness in examining the statements of the affected account and in notifying us after discovery of the forgery, unauthorized signature or alteration. Therefore, you agree that such items shall be fully enforceable against you and you shall have no claim against us for payment of these items. Regardless of any of the above or any action or inaction on our part, if you fail to notify us of a forgery, unauthorized signature or alteration within 90 days of the date the item (or a description of the item) or Account statement was made available to you, you agree that you are absolutely barred from bringing any action against us that is related in any way to the forgery, unauthorized signature or alteration or to any additional forgeries, unauthorized signatures or altered items by the same person.
  13. Additional information about electronic check conversion
    When we use information from your check to make an electronic fund transfer, funds may be withdrawn from your account as soon as the same day we receive your deposit, and you may not receive your check back from us.
  14. Stopping Payment on a Check
    If you have an Account which offers check-writing capability and you need to stop the payment of a check you have written for your Account, we must receive it in time to give us a reasonable opportunity to act on it before we process the check for payment. You may use any of the following methods to provide a stop payment order:

    Go online to your Account at SallieMae.com/Banking
    Call us at: 877-346-2756 (877-3GO-2SLM); or
    Write to us at 175 S. West Temple, Ste. 600, Salt Lake City, UT 84101.

    All stop payment orders must identify the account number and check number to be effective. Only the person who initiated the stop payment order may release a stop payment request. The stop payment order will be effective within one business day of the day on which we receive and process the request. We will not process your request if you do not have sufficient funds in your Account to pay the fee associated with your stop payment request. You agree to indemnify and hold us harmless from any and all liability of any kind which may arise by reason of us acting in compliance with your directive to stop a payment on any check. You will be charged the fees set forth in Sections 7c, 7d, 8m.
  15. e-deposit
    e-deposit (also known as remote check deposit) is a free service allowing customers to electronically deposit checks via iPhone® or AndroidTM smartphone. e-deposit is available to all Sallie Mae account types with the exception of certificates of deposit. All checks deposited via e-deposit may be subject to further review. If your e-deposit is not accepted, we will notify you via email. For all e-deposits, Sallie Mae advises you to store the checks you submit for e-deposit until you see the deposit post as 'available' to your account. Once 'available' in your account, please destroy your check or mark it as 'void'.

    e-deposit via smartphone is offered as part of Sallie Mae Mobile Banking apps for iPhone® and AndroidTM. To access e-deposit via iPhone® or AndoidTM enrollment in Sallie Mae mobile banking is required. Sallie Mae Mobile Banking is a free service. The mobile banking terms and conditions can be found here.

    Standard hold times for check deposits made via e-deposit. Checks deposited after 3:00PM will not be processed until next business day. Sallie Mae accepts valid checks drawn on United States banks that are made payable to you. Please note we do not accept:
    • Checks containing obvious alteration to any of the fields on the front of the check or item
    • Checks previously converted to a substitute check
    • Checks that are remotely created
    • Checks not payable in United States currency
    • Traveler's checks or money orders
    • Checks dated more than six months prior to the date of deposit
    • Checks prohibited by Sallie Mae's current procedures relating to Sallie Mae Mobile Banking or which are otherwise not acceptable under the terms of your account(s) including money orders, third party checks, foreign checks and starter checks. This also includes checks which you know or suspect are fraudulent or otherwise not authorized by the owner of the account on which the check is drawn.

    Sallie Mae e-deposit Limits
    Deposits via e-deposit are limited to the following maximums:

    e-deposit Daily Deposit Limit ($)
    Total Dollar Amount: $500.00
    Total Number of Deposits: 5 deposits

    e-deposit Weekly Deposit Limit ($)
    Total Dollar Amount: $500.00
    Total Number of Deposits: 5 deposits

    e-deposit Monthly Deposit Limit ($)
    Total Dollar Amount: $1,000.00
    Total Number of Deposits: 5 deposits

  16. 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: https://www.salliemae.com/assets/about/SLMBank-Privacy-Policy.pdf. You authorize us to share information about you and your account with third parties who have referred you to us, as permitted by law.
  17. Periodic Statements
    Statements in electronic format will be made available at no charge. You may view your statement by accessing your Account at SallieMae.com/Banking. You may choose to have a paper statement mailed to you. However, there may be a fee for this as set forth in the "Fees and Charges" section above.
  18. 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. 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."
  19. 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.
  20. 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.
  21. 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, 175 S West Temple, Ste 600, Salt Lake City, UT 84101. 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.
  22. 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).
  23. 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: 175 S. West Temple, Ste. 600, Salt Lake City, UT 84101. 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.).
  24. 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.
  25. 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.
  26. 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.
  27. 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.
  28. No Fiduciary Obligation
    Sallie Mae 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.
  29. 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.
  30. Sallie Mae's Legal Rights
    We do not waive our rights by delaying or failing to exercise them at anytime.
  31. Right to Set-Off
    1. For all Accounts: By opening an Account with Sallie Mae, you agree that we have the right to set off with respect to your Account(s). If you owe Sallie Mae 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 unless prohibited by applicable law. 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."
  32. 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.
  33. Telephone Monitoring
    You agree that your telephone calls with us may be monitored and recorded for quality assurance and security purposes.
  34. 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.
  35. 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.
  36. Amendment, Cancellation and Change in Terms
    Sallie Mae 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.
  37. 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, 175 S West Temple, Ste 600, Salt Lake City, UT 84101 within 60 days after the date of your first deposit. 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(as well as the definition of "Claim" in section D below):
      "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, the Sallie Mae logo, Sallie Mae Bank and the Sallie Mae Bank logo are service marks or registered service marks of Sallie Mae Bank or its subsidiaries. SLM Corporation and its subsidiaries, including Sallie Mae Bank, are not sponsored by or agencies of the United States of America. © 2015 Sallie Mae Bank. All rights reserved. 04/2014
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