(4) Student loans (A) In general This subsection shall not apply to any arrangement between the Holding Company (or any subsidiary of the Holding Company other than the Student Loan Marketing Association) and a depository institution, if the Secretary approves the affiliation and determines that— (i) the reorganization of such Association in accordance with section 1087–3 of title 20 will not be adversely affected by the arrangement; (ii) the dissolution of the Association pursuant to such reorganization will occur before the end of the 2-year period beginning on the date on which such arrangement is consummated or on such earlier date as the Secretary deems appropriate: Provided, That the Secretary may extend this period for not more than 1 year at a time if the Secretary determines that such extension is in the public interest and is appropriate to achieve an orderly reorganization of the Association or to prevent market disruptions in connection with such reorganization, but no such extensions shall in the aggregate exceed 2 years; (iii) the Association will not purchase or extend credit to, or guarantee or provide credit enhancement to, any obligation of the depository institution; (iv) the operations of the Association will be separate from the operations of the depository institution; and (v) until the “dissolution date” (as that term is defined in section 1087–3 of title 20 ) has occurred, such depository institution will not use the trade name or service mark “Sallie Mae” in connection with any product or service it offers if the appropriate Federal banking agency for such depository institution determines that— (I) the depository institution is the only institution offering such product or service using the “Sallie Mae” name; and (II) such use would result in the depository institution having an unfair competitive advantage over other depository institutions. (B) Terms and conditions In approving any arrangement referred to in subparagraph (A) the Secretary may impose any terms and conditions on such an arrangement that the Secretary considers appropriate, including— (i) imposing additional restrictions on the issuance of debt obligations by the Association; or (ii) restricting the use of proceeds from the issuance of such debt. (C) Additional limitations In the event that the Holding Company (or any subsidiary of the Holding Company) enters into such an arrangement, the value of the Association’s “investment portfolio” shall not at any time exceed the lesser of— (i) the value of such portfolio on the date of the enactment of this subsection; or (ii) the value of such portfolio on the date such an arrangement is consummated. The term “investment portfolio” shall mean all investments shown on the consolidated balance sheet of the Association other than— (I) any instrument or assets described in section 1087–2(d) of title 20 , as such section existed on the day before the date of the repeal of such section; (II) any direct noncallable obligations of the United States or any agency thereof for which the full faith and credit of the United States is pledged; or (III) cash or cash equivalents. (D) Enforcement The terms and conditions imposed under subparagraph (B) may be enforced by the Secretary in accordance with section 1087–3 of title 20 . (E) Definitions For purposes of this paragraph, the following definition shall apply— (i) Association; Holding Company Notwithstanding any provision in section 1813 of this title , the terms “Association” and “Holding Company” have the same meanings as in section 1087–3(i) of title 20 . (ii) Secretary The term “Secretary” means the Secretary of the Treasury.


12 USC § 1828(s)()(4)

Scoping language

For purposes of this paragraph
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