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EXHIBIT 99.2
SALE AGREEMENT MASTER SECURITIZATION TERMS NUMBER 1000
These Sale Agreement Master Securitization Terms Number 1000 ("Master
Sale Terms") dated as of November 12, 1997 among SLM Funding Corporation
("Seller"), Chase Manhattan Bank USA, National Association, not in its
individual capacity but solely as Interim Eligible Lender Trustee (the "Interim
Eligible Lender Trustee") for the benefit of the Seller under the Interim Trust
Agreement dated as of November 1, 1997 between Seller and the Interim Eligible
Lender Trustee, Chase Manhattan Bank USA, National Association, not in its
individual capacity but solely as Eligible Lender Trustee on behalf of SLM
Student Loan Trust 1997-4 (the "Eligible Lender Trustee"), and SLM Student Loan
Trust 1997-4 (the "Purchaser"), shall be effective upon execution by the
parties hereto. References to the Seller herein mean the Interim Eligible
Lender Trustee, and references to the Purchaser mean the Eligible Lender
Trustee, for all purposes involving the holding or transferring of legal title
to the Trust Student Loans.
WHEREAS, the Seller is the owner of certain student loans guaranteed
under the Higher Education Act;
WHEREAS, legal title to such loans is vested in the Interim Eligible
Lender Trustee, as trustee for the benefit of the Seller as the sole
beneficiary;
WHEREAS, Seller may desire to sell its interest in such loans from
time to time and Purchaser may desire to purchase such loans from Seller;
WHEREAS, the Eligible Lender Trustee is willing to hold legal title
to, and serve as eligible lender trustee with respect to, such loans for the
benefit of the Purchaser;
NOW, THEREFORE, in connection with the mutual promises contained
herein, the parties hereto agree as follows:
SECTION 1. TERMS
These Master Sale Terms establish the terms under which Seller (and
with respect to legal title, the Interim Eligible Lender Trustee for the
benefit of Seller) may sell and Purchaser (and with respect to legal title, the
Eligible Lender Trustee on behalf of the Purchaser) may purchase the Loans (and
all obligations of the Borrowers thereunder) specified on each Sale Agreement
("Sale Agreement") as the parties may execute from time to time pursuant to
these Master Sale Terms. Each such Sale Agreement shall be substantially in
the form of Attachment A hereto, incorporating by reference the terms of these
Master Sale Terms, and shall be a separate agreement among Seller, Purchaser,
Eligible Lender Trustee on behalf of Purchaser, and the Interim Eligible Lender
Trustee for the benefit of Seller with respect to the Loans covered by the
terms of such Sale Agreement for all purposes. If the terms of a
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Sale Agreement conflict with the terms of these Master Sale Terms, the terms of
such Sale Agreement shall supersede and govern.
SECTION 2. DEFINITIONS
Capitalized terms used but not otherwise defined herein shall have the
definitions set forth in Appendix A hereto.
For purposes hereof:
(A) "Account" means all of the Eligible Loans hereunder of one (1)
Borrower that are of the same Loan type made under the identical
subsection of the Higher Education Act and in the same status.
(B) "Xxxx of Sale" means that document executed by an authorized
officer of the Seller and the Interim Eligible Lender Trustee for the
benefit of Seller which shall set forth the Loans offered by the
Seller and the Interim Eligible Lender Trustee for the benefit of the
Seller and accepted for purchase by the Eligible Lender Trustee on
behalf of the Purchaser and which shall sell, assign and convey to the
Eligible Lender Trustee on behalf of the Purchaser and its assignees
all right, title and interest of the Seller and of the Interim
Eligible Lender Trustee for the benefit of the Seller in the Loans
listed on the Xxxx of Sale and will certify that the representations
and warranties made by the Seller pursuant to Section 5(A) of these
Master Sale Terms are true and correct.
(C) "Borrower" means the obligor on a Loan.
(D) "Consolidation Loan" means a Loan made pursuant to and in full
compliance with Section 428C of the Higher Education Act.
(E) "Cutoff Date" means with respect to the first sale hereunder,
October 27, 1997, and, with respect to subsequent sales hereunder, a
date agreed to by Seller and Purchaser to use in determining the
Principal Balance and accrued interest to be capitalized for purposes
of completing the Loan Transmittal Summary Form.
(F) "Deferred Payment" means all amounts equal to amounts distributed
to the Seller pursuant to Section 2.8C(G) of the Administration
Agreement (exclusive of the amount of any such distribution
attributable to the reduction from time to time of the Specified
Reserve Account Balance).
(G) "Delinquent" means the period any payment of principal or
interest due on the Loan is overdue.
(H) "Eligible Loan" means a Loan offered for sale by Seller under
the Sale Agreement which as of the Cutoff Date is current or no more
Delinquent than permitted under the Sale
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Agreement in payment of principal or interest and which meets the
following criteria as of the effective date of the Xxxx of Sale:
(i) is a Xxxxxxxx Loan, a Consolidation Loan, a PLUS Loan or
SLS Loan;
(ii) is owned by Seller and is fully disbursed;
(iii) is guaranteed as to principal and interest by the
applicable Guarantor to the maximum extent permitted by the
Higher Education Act for such Loan;
(iv) bears interest at a stated rate of not less than the
maximum rate permitted under the Higher Education Act for such
Loan;
(v) is eligible for the payment of the quarterly special
allowance at the full and undiminished rate established under
the formula set forth in the Higher Education Act for such
Loan;
(vi) if not yet in repayment status, is eligible for the
payment of interest benefits by the Secretary or, if not so
eligible, is a Loan for which interest either is billed
quarterly to Borrower or deferred until commencement of the
repayment period, in which case such accrued interest is
subject to capitalization to the full extent permitted by the
applicable Guarantor;
(vii) is supported by the following documentation:
(a) for each Loan:
1. loan application, and any supplement
thereto,
2. original promissory note and any
addendum thereto or a certified copy
thereof if more than one loan is
represented by a single promissory
note and all loans so represented
are not being sold at the same time,
3. evidence of guarantee,
4. any other document and/or record
which Purchaser may be required to
retain pursuant to the Higher
Education Act; and
(b) for each Loan only if applicable:
1. payment history (or similar
document) including (i) an
indication of the
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Principal Balance and the date through
which interest has been paid, each
as of the Cutoff Date and (ii) an
accounting of the allocation of all
payments by Borrower or on
Borrower's behalf to principal and
interest on the Loan,
2. documentation which supports periods
of current or past deferment or
past forbearance,
3. a collection history, if the Loan
was ever in a delinquent status,
including detailed summaries of
contacts and including the addresses
or telephone numbers used in
contacting or attempting to contact
Borrower and any endorser and, if
required by the Guarantor, copies of
all letters and other correspondence
relating to due diligence
processing,
4. evidence of all requests for
skip-tracing assistance and current
address of Borrower, if located,
5. evidence of requests for pre-claims
assistance, and evidence that the
Borrower's school(s) have been
notified,
6. a record of any event resulting in a
change to or confirmation of any
data in the Loan file.
(I) "Initial Payment" means the dollar amount specified in the
applicable Sale Agreement.
(J) "Loan" means the Note or Notes offered for sale pursuant to the
Sale Agreement and related documentation together with any guaranties
and other rights relating thereto including, without limitation,
Interest Subsidy Payments and Special Allowance Payments.
(K) "Loan Transmittal Summary Forms" means the forms provided to
Seller by Purchaser and completed by Seller which list, by Borrower,
the Loans subject to the Xxxx of Sale and the outstanding Principal
Balance and accrued interest thereof as of the Cutoff Date.
(L) "Note" means the promissory note of the Borrower and any
amendment thereto evidencing the Borrower's obligation with regard to
a student loan guaranteed under the Higher Education Act.
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(M) "PLUS Loan" means a Loan which was made pursuant to the
PLUS Program established under Section 428B of the Higher Education
Act(or predecessor provisions).
(N) "Principal Balance" means the outstanding principal amount of
the Loan, plus interest expected to be capitalized (if any), less
amounts which may not be insured (such as late charges).
(O) "Purchase Price" means the sum of the Initial Payment and
Deferred Payment.
(P) "Secretary" means the United States Secretary of Education or any
successor.
(Q) "SLS Loan" means a Loan which was made pursuant to the
Supplemental Loans for Students Program established under Section 428A
of the Higher Education Act(or predecessor provisions), including
Loans referred to as ALAS Loans or Student PLUS Loans.
(R) "Xxxxxxxx Loans" means Subsidized Xxxxxxxx Loans and Unsubsidized
Xxxxxxxx Loans.
(S) "Subsidized Xxxxxxxx Loan" means a Loan for which the interest
rate is governed by Section 427A(a) or 427A(d) of the Higher Education
Act.
(T) "Unsubsidized Xxxxxxxx Loan" means a Loan made pursuant to
Section 428H of the Higher Education Act.
SECTION 3. SALE/PURCHASE
(A) Consummation of Sale and Purchase
The sale and purchase of Eligible Loans pursuant to a Sale
Agreement shall be consummated upon Purchaser's receipt from the
Seller and the Interim Eligible Lender Trustee for the benefit of the
Seller of the Xxxx of Sale and the payment by Purchaser to Seller of
the Initial Payment, and when consummated such sale and purchase shall
be effective as of the date of the Xxxx of Sale. Seller and Purchaser
shall use their best efforts to perform promptly their respective
obligations pursuant to such Sale Agreement.
(B) Settlement of the Initial Payment
Purchaser on the date of the Xxxx of Sale shall pay Seller the
Initial Payment by wire transfer in immediately available funds to the
account specified by Seller.
(C) Interest Subsidy And Special Allowance Payments
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On the date of the Xxxx of Sale, Seller shall be entitled to
all Interest Subsidy Payments and Special Allowance Payments on the
Loans subject to each Xxxx of Sale accruing up to but not including
the date of the Xxxx of Sale. The Purchaser and the Eligible Lender
Trustee for the benefit of Purchaser shall be entitled to all Special
Allowance Payments and Interest Subsidy Payments accruing from the
date of the Xxxx of Sale.
(D) Special Programs
In consideration of the sale of the Eligible Loans under these
Master Sale Terms and each Sale Agreement, Purchaser agrees to cause the
Servicer to offer borrowers of Trust Student Loans all special programs whether
or not in existence as of the date of any Sale Agreement generally offered to
the obligors of comparable loans owned by Xxxxxx Mae subject to the terms and
conditions of Section 3.12 of the Servicing Agreement.
(E) Deferred Payment
Receipt by the Seller of amounts distributed to the Seller
pursuant to Section 2.8C(G) of the Administration Agreement (exclusive
of the amount of any such distribution attributable to the reduction
from time to time of the Specified Reserve Account Balance) shall
constitute payment to the Seller of the Deferred Payment portion of
the Purchase Price.
SECTION 4. CONDITIONS PRECEDENT TO SALE AND PURCHASE
(A) Activities Prior to the Sale
Following the execution of a Sale Agreement, Seller shall
provide any assistance requested by Purchaser in determining that all
required documentation on the Loans is present and correct.
(B) Continued Servicing
Seller shall service, or cause to be serviced, all Loans as
required under the Higher Education Act until the date of the Xxxx of
Sale.
(C) Xxxx of Sale/Loan Transmittal Summary Form
Seller shall deliver to Purchaser:
(i) a Xxxx of Sale executed by an authorized officer of the
Seller and the Interim Eligible Lender Trustee for the benefit
of the Seller, covering Loans offered by the Seller and
accepted by Purchaser as set forth thereon, selling, assigning
and conveying to the Eligible Lender Trustee for the benefit
of the Purchaser and its
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assignees all right, title and interest of the Seller and the
Interim Eligible Lender Trustee for the benefit of the Seller,
including the insurance interest of the Interim Eligible
Lender Trustee for the benefit of the Seller, in each of the
Loans, and stating that the representations and warranties
made by Seller in Section 5 of these Master Sale Terms are
true and correct on and as of the date of the Xxxx of Sale;
and
(ii) the Loan Transmittal Summary Form, attached to the Xxxx
of Sale, identifying each of the Eligible Loans which is the
subject of the Xxxx of Sale and setting forth the unpaid
Principal Balance of each such Loan.
(D) Endorsement
The Seller shall provide a blanket endorsement transferring
the entire interest of the Seller and the Interim Eligible Lender
Trustee for the benefit of Seller in the Loans to the Eligible Lender
Trustee for the benefit of the Purchaser with the form of endorsement
provided for in the Sale Agreement.
At the direction of and in such form as Purchaser may
designate, the Seller also agrees to individually endorse any Eligible
Loan as Purchaser may request from time to time.
(E) Officer's Certificate
Seller shall furnish to Purchaser, with each Xxxx of Sale
provided in connection with each sale of Loans pursuant to these
Master Sale Terms, an Officer's Certificate, dated as of the date of
such Xxxx of Sale.
(F) Loan Transfer Statement
Upon Purchaser's request, Seller shall deliver to Purchaser
one (1) or more Loan Transfer Statements (Department Form OE 1074 or
its equivalent) provided by Purchaser, executed by the Interim
Eligible Lender Trustee for the benefit of the Seller and dated the
date of the Xxxx of Sale. Seller agrees that Purchaser and the
Eligible Lender Trustee may use the Xxxx of Sale, including the Loan
Transmittal Summary Form attached to the Xxxx of Sale, in lieu of OE
Form 1074, as official notification to the Guarantor of the assignment
by the Interim Eligible Lender Trustee for the benefit of the Seller
to the Eligible Lender Trustee for the benefit of the Purchaser of the
Loans listed on the Xxxx of Sale.
(G) Power of Attorney
Seller and the Interim Eligible Lender Trustee hereby grant to
the Eligible Lender Trustee on behalf of the
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Purchaser an irrevocable power of attorney, which power of
attorney is coupled with an interest, to individually endorse
or cause to be individually endorsed in the name of the Seller
and the Interim Eligible Lender Trustee for the benefit of the
Seller any Eligible Loan to evidence the transfer of such
Eligible Loan to the Eligible Lender Trustee on behalf of the
Purchaser and to transfer or to cause to be transferred
physical possession of any Note from Xxxxxx Xxx or the
Servicer to the Eligible Lender Trustee or the Indenture
Trustee or any other custodian on behalf of either of them.
SECTION 5. REPRESENTATIONS AND WARRANTIES OF SELLER AND
ELIGIBLE LENDER TRUSTEE
(A) General
Seller represents and warrants to Purchaser that with respect to a
portfolio of Loans as of the date of each Sale Agreement and Xxxx of Sale;
(i) The Interim Eligible Lender Trustee is an eligible
lender or other qualified holder of loans originated pursuant
to the Federal Family Education Loan Program established under
the Higher Education Act;
(ii) The Interim Eligible Lender Trustee and the Seller are
duly organized and existing under the laws of the applicable
jurisdiction;
(iii) The Interim Eligible Lender Trustee and the Seller have
all requisite power and authority to enter into and to perform
the terms of these Master Sale Terms and each Sale Agreement;
and
(iv) The Interim Eligible Lender Trustee and the Seller will
not, with respect to any Loan purchased under Sale Agreements
executed pursuant to these Master Sale Terms, agree to release
any Guarantor from any of its contractual obligations as an
insurer of such Loan or agree otherwise to alter, amend or
renegotiate any material term or condition under which such
Loan is insured, except as required by law or rules and
regulations issued pursuant to law, without the express prior
written consent of Purchaser.
(B) Particular
Seller represents and warrants to Purchaser as to the Loans
purchased by Purchaser under each Sale Agreement and each Xxxx of Sale
executed pursuant to these Master Sale Terms:
(i) The Interim Eligible Lender Trustee for the benefit of
the Seller has good title to, and is the sole owner
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of, the Loans, free and clear of all security interests,
liens, charges, claims, offsets, defenses, counterclaims or
encumbrances of any nature and no right of rescission,
offsets, defenses, or counterclaims have been asserted or
threatened with respect to the Loans;
(ii) The Loans are Eligible Loans and the description of the
Loans set forth in the Sale Agreement and the Loan Transmittal
Summary Form is true and correct;
(iii) The Interim Eligible Lender Trustee and the Seller are
authorized to sell, assign, transfer and repurchased the
Loans; and the sale, assignment and transfer of such Loans is
or, in the case of a Loan repurchased by the Seller and or the
Interim Eligible Lender Trustee, will be made pursuant to and
consistent with the laws and regulations under which the
Seller and the Interim Eligible Lender Trustee operate, and
will not violate any decree, judgment or order of any court or
agency, or conflict with or result in a breach of any of the
terms, conditions or provisions of any agreement or instrument
to which the Interim Eligible Lender Trustee or the Seller is
a party or by which the Interim Eligible Lender Trustee or
Seller or its property is bound, or constitute a default (or
an event which could constitute a default with the passage of
time or notice or both) thereunder;
(iv) The Loans are each in full force and effect in
accordance with their terms and are legal, valid and binding
obligations of the respective Borrowers thereunder subject to
no defenses (except the defense of infancy);
(v) Each Loan has been duly made and serviced in accordance
with the provisions of the Federal Family Education Loan
Program established under the Higher Education Act, and has
been duly insured by a Guarantor; such guarantee is in full
force and effect and is freely transferable to the Eligible
Lender Trustee for the benefit of the Purchaser as an incident
to the purchase of each Loan; and all premiums due and payable
to such Guarantor shall have been paid in full as of the date
of the Xxxx of Sale;
(vi) Any payments on the Loans received by the Interim
Eligible Lender Trustee for the benefit of the Seller which
have been allocated to reduction of principal and interest on
such Loans have been allocated on a simple interest basis; the
information with respect to the Loans as of the Cutoff Date as
stated on the Loan Transmittal Summary Form is true and
correct;
(vii) Due diligence and reasonable care have been exercised in
the making, administering, servicing and
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collecting the Loans and, with respect to any Loan for which
repayment terms have been established, all disclosures of
information required to be made pursuant to the Higher
Education Act have been made;
(viii) All origination fees authorized to be collected
pursuant to Section 438 of the Higher Education Act have been
paid to the Secretary;
(ix) Each Loan has been duly made and serviced in accordance
with the provisions of all applicable federal and state laws;
(x) No Loan is more than one hundred and twenty (120) days
Delinquent as of the Cutoff Date and no default, breach,
violation or event permitting acceleration under the terms of
any Loan has arisen; and neither the Seller nor any
predecessor holder of any Loan has waived any of the foregoing
other than as permitted by the Basic Documents;
(xi) It is the intention of Seller, the Interim Eligible
Lender Trustee, the Eligible Lender Trustee, and the
Purchaser, and the Seller hereby warrants, that the transfer
and assignment herein contemplated constitute a valid sale of
the Loans from Seller and the Interim Eligible Lender Trustee
to the Eligible Lender Trustee for the benefit of Purchaser
and that the beneficial interest in and title to such Loans
not be part of the Seller's estate in the event of the
bankruptcy of the Seller or the appointment of a receiver with
respect to Seller;
(xii) There is only one original executed copy of the
promissory note evidencing each Loan; and
(xiii) No Borrower of any Loan as of the Cutoff Date is noted
in the related Loan File as being currently involved in a
bankruptcy proceeding.
(C) The Eligible Lender Trustee and the Purchaser represent and warrant that
as of the date of each Sale Agreement and each Xxxx of Sale:
(i) The Eligible Lender Trustee is duly organized and validly
existing in good standing under the laws of its governing jurisdiction
and has an office located within the State of Delaware. It has all
requisite corporate power and authority to execute, deliver and
perform its obligations under this Sale Agreement;
(ii) The Eligible Lender Trustee has taken all corporate
action necessary to authorize the execution and delivery by it of
these Master Sale Terms and each Sale Agreement, and these
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Master Sale Terms and each Sale Agreement have been and will be
executed and delivered by one of its officers who is duly authorized
to execute and deliver the Sale Agreement on its behalf;
(iii) Neither the execution nor the delivery by it of these Master
Sale Terms and each Sale Agreement, nor the consummation by it of the
transactions contemplated hereby or thereby nor compliance by it with
any of the terms or provisions hereof or thereof will contravene any
Federal or Delaware state law, governmental rule or regulation
governing the banking or trust powers of the Eligible Lender Trustee
or any judgment or order binding on it, or constitute any default
under its charter documents or by-laws or any indenture, mortgage,
contract, agreement or instrument to which it is a party or by which
any of its properties may be bound; and
(iv) The Eligible Lender Trustee is an "eligible lender" as such
term is defined in Section 435(d) of the Higher Education Act, for
purposes of holding legal title to the Trust Student Loans as
contemplated by these Master Sale Terms and each Sale Agreement and the
other Basic Documents, it has a lender identification number with
respect to the Trust Student Loans from the Department and has in
effect a Guarantee Agreement with each of the Guarantors with respect
to the Trust Student Loans.
SECTION 6. PURCHASE OF TRUST STUDENT LOANS; REIMBURSEMENT
Each party to this Agreement shall give notice to the other such
parties and to the Servicer, the Administrator and Xxxxxx Xxx promptly, in
writing, upon the discovery of any breach of Seller's representations and
warranties made pursuant to Section 5 hereof which has a materially adverse
effect on the interest of the Purchaser in any Trust Student Loan. In the
event of such a material breach which is not curable by reinstatement of the
applicable Guarantor's guarantee of such Trust Student Loan, Seller shall
repurchase any affected Trust Student Loan not later than 120 days following
the earlier of the date of discovery of such material breach and the date of
receipt of the Guarantor reject transmittal form with respect to such Trust
Student Loan. In the event of such a material breach which is curable by
reinstatement of the applicable Guarantor's guarantee of such Trust Student
Loan, unless the material breach shall have been cured within 360 days
following the earlier of the date of discovery of such material breach and the
date of receipt of the Guarantor reject transmittal form with respect to such
Trust Student Loan, the Seller shall purchase such Trust Student Loan not later
than the sixtieth day following the end of such 360-day period. The Seller
shall also remit as provided in Section 2.6 of the Administration Agreement on
the date of purchase of any Trust Student Loan pursuant to this Section 6 an
amount equal to all nonguaranteed interest amounts and forfeited Interest
Subsidy Payments and Special Allowance Payments with respect to such Trust
Student Loan. In consideration of the
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purchase of any such Trust Student Loan pursuant to this Section 6, the Seller
shall remit the Purchase Amount in the manner specified in Section 2.6 of the
Administration Agreement.
In addition, if any breach of Section 5 hereof by the Seller does not
trigger such purchase obligation but does result in the refusal by a Guarantor
to guarantee all or a portion of the accrued interest (or any obligation of the
Purchaser to repay such interest to a Guarantor), or the loss (including any
obligation of the Purchaser to repay the Department) of Interest Subsidy
Payments and Special Allowance Payments, with respect to any Trust Student Loan
affected by such breach, then the Seller shall reimburse the Purchaser by
remitting an amount equal to the sum of all such nonguaranteed interest amounts
and such forfeited Interest Subsidy Payments or Special Allowance Payments in
the manner specified in Section 2.6 of the Administration Agreement not later
than (i) the last day of the next Collection Period ending not less than 60
days from the date of the Guarantor's refusal to guarantee all or a portion of
accrued interest or loss of Interest Subsidy Payments or Special Allowance
Payments, or (ii) in the case where the Seller reasonably believes such losses
are likely to be collected, not later than the last day of the next Collection
Period ending not less than 360 days from the date of the Guarantor's refusal
to guarantee all or a portion of accrued interest or loss of Interest Subsidy
Payments or Special Allowance Payments. At the time such payment is made, the
Seller shall not be required to reimburse the Purchaser for interest that is
then capitalized, however, such amounts shall be reimbursed if the borrower
subsequently defaults and such capitalized interest is not paid by the
Guarantor.
Anything in this Section 6 to the contrary notwithstanding, if as of
the last Business Day of any month the aggregate outstanding principal amount
of Trust Student Loans with respect to which claims have been filed with and
rejected by a Guarantor or with respect to which the Servicer determines that
claims cannot be filed pursuant to the Higher Education Act as a result of a
breach by the Seller or the Servicer, exceeds 1% of the Pool Balance, the
Seller or the Servicer shall purchase, within 30 days of a written request of
the Eligible Lender Trustee or the Indenture Trustee, such affected Trust
Student Loans in an aggregate principal amount such that after such purchase
the aggregate principal amount of such affected Trust Student Loans is less
than 1% of the Pool Balance. The Trust Student Loans to be purchased by the
Seller or the Servicer pursuant to the preceding sentence shall be based on the
date of claim rejection (or the date of notice referred to in the first
sentence of this Section 6), with Trust Student Loans with the earliest such
date to be purchased first.
In lieu of repurchasing Trust Student Loans pursuant to this Section
6, the Seller may, at its option, substitute Eligible Loans or arrange for the
substitution of Eligible Loans which are substantially similar on an aggregate
basis as of the date of substitution to the Trust Student Loans for which they
are being substituted with respect to the following characteristics:
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(1) status (i.e., in-school, grace, deferment,
forbearance or repayment),
(2) program type (i.e., Unsubsidized Xxxxxxxx, Subsidized
Xxxxxxxx, PLUS or SLS),
(3) school type,
(4) total return,
(5) principal balance, and
(6) remaining term to maturity.
In addition, each substituted Eligible Loan will comply, as of the
date of substitution, with all of the representations and warranties made
hereunder. In choosing Eligible Loans to be substituted pursuant to this
Section 6, the Seller shall make a reasonable determination that the Eligible
Loans to be substituted will not have a material adverse effect on the
Noteholders and the Certificateholders.
In the event that Seller elects to substitute Eligible Loans pursuant
to this Section 6, the Seller will remit to the Administrator the amount of any
shortfall between the Purchase Amount of the substituted Eligible Loans and the
Purchase Amount of the Trust Student Loans for which they are being
substituted. The Seller shall also remit to the Administrator an amount equal
to all nonguaranteed interest amounts and forfeited Interest Subsidy Payments
and Special Allowance Payments with respect to the Trust Student Loans in the
manner provided in Section 2.6 of the Administration Agreement. The sole
remedy of the Purchaser, the Eligible Lender Trustee, the Certificateholders
and the Noteholders with respect to a breach by the Seller pursuant to Section
5 hereof shall be to require the Seller to purchase Trust Student Loans, to
reimburse the Purchaser as provided above or to substitute Student Loans
pursuant to this Section. The Eligible Lender Trustee shall have no duty to
conduct any affirmative investigation as to the occurrence of any condition
requiring the purchase of any Trust Student Loan or the reimbursement for any
interest penalty pursuant to this Section 6.
SECTION 7. OBLIGATION TO REMIT SUBSEQUENT PAYMENTS
AND FORWARD COMMUNICATIONS
(A) Any payment received by Seller with respect to amounts accrued
after the Date of the Xxxx of Sale for any Loan sold to Purchaser,
which payment is not reflected in the Loan Transmittal Summary Form,
shall be received by Seller in trust for the account of Purchaser and
the Seller hereby disclaims any title to or interest in any such
amounts. Within two (2) business days following the date of receipt,
Seller shall remit to Purchaser an amount equal to any such payments
along
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with a listing on a form provided by Purchaser identifying the Loans
with respect to which such payments were made, the amount of each such
payment and the date each such payment was received.
(B) Any written communication received at any time by Seller with
respect to any Loan subject to any Sale Agreement shall be transmitted
by Seller to Servicer within two (2) business days of receipt. Such
communications shall include, but not be limited to, letters, notices
of death or disability, notices of bankruptcy, forms requesting
deferment of repayment or loan cancellation, and like documents.
SECTION 8. CONTINUING OBLIGATION OF SELLER
Seller shall provide all reasonable assistance necessary for Purchaser
to resolve account problems raised by any Borrower, the Guarantor or the
Secretary provided such account problems are attributable to or are alleged to
be attributable to (a) an event occurring during the period Seller owned the
Loan, or (b) a payment made or alleged to have been made to Seller. Further,
the Seller agrees to execute any financing statements at the request of the
Purchaser in order to reflect the Purchaser's interest in the Loans.
SECTION 9. LIABILITY OF SELLER; INDEMNITIES
The Seller shall be liable in accordance herewith only to the extent of
the obligations specifically undertaken by the Seller under this Sale
Agreement.
(i) The Seller shall indemnify, defend and hold harmless the Purchaser
and the Eligible Lender Trustee in its individual capacity and their
officers, directors, employees and agents from and against any taxes
that may at any time be asserted against any such Person with respect
to the transactions contemplated herein and in the other Basic
Documents (except any such income taxes arising out of fees paid to
the Eligible Lender Trustee), including any sales, gross receipts,
general corporation, tangible and
intangible personal property, privilege or license taxes and costs and
expenses in defending against the same.
(ii) The Seller shall indemnify, defend and hold harmless the
Purchaser and the Eligible Lender Trustee in its individual capacity
and their officers, directors, employees and agents of the Purchaser
and the Eligible Lender Trustee from and against any and all costs,
expenses, losses, claims, damages and liabilities arising out of, or
imposed upon such Person through, the Seller's willful misfeasance,
bad faith or gross negligence in the performance of its duties under
the Sale Agreement, or by reason of reckless disregard of its
obligations and duties under the Sale Agreement.
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15
(iii) The Seller shall be liable as primary obligor for, and shall
indemnify, defend and hold harmless the Eligible Lender Trustee in its
individual capacity and its officers, directors, employees and agents
from and against, all costs, expenses, losses, claims, damages,
obligations and liabilities arising out of, incurred in connection
with or relating to the Sale Agreement, the other Basic Documents, the
acceptance or performance of the trusts and duties set forth herein
and in the Sale Agreement or the action or the inaction of the
Eligible Lender Trustee hereunder, except to the extent that such
cost, expense, loss, claim, damage, obligation or liability: (a)
shall be due to the willful misfeasance, bad faith or negligence
(except for errors in judgment) of the Eligible Lender Trustee, (b)
shall arise from any breach by the Eligible Lender Trustee of its
covenants in its individual capacity under any of the Basic Documents;
or (c) shall arise from the breach by the Eligible Lender Trustee of
any of its representations or warranties in its individual capacity
set forth in these Master Sale Terms or any Sale Agreement. In the
event of any claim, action or proceeding for which indemnity will be
sought pursuant to this paragraph, the Eligible Lender Trustee's
choice of legal counsel shall be subject to the approval of the
Seller, which approval shall not be unreasonably withheld.
Indemnification under this Section shall survive the resignation or
removal of the Eligible Lender Trustee and the termination of these Master Sale
Terms and shall include reasonable fees and expenses of counsel and expenses
of litigation. If the Seller shall have made any indemnity payments pursuant to
this Section and the Person to or for the benefit of whom such payments are
made thereafter shall collect any of such amounts from others, such Person
shall promptly repay such amounts to the Seller, without interest.
SECTION 10. MERGER OR CONSOLIDATION OF, OR ASSUMPTION OF THE
OBLIGATIONS OF SELLER
Any Person (a) into which the Seller may be merged or consolidated,
(b) which may result from any merger or consolidation to which the Seller shall
be a party or (c) which may succeed to the properties and assets of the Seller
substantially as a whole, shall be the successor to the Seller without the
execution or filing of any document or any further act by any of the parties to
these Master Sale Terms; provided, however, that the Seller hereby covenants
that it will not consummate any of the foregoing transactions except upon
satisfaction of the following: (i) the surviving Person, if other than the
Seller, executes an agreement of assumption to perform every obligation of the
Seller under these Master Sale Terms, (ii) immediately after giving effect to
such transaction, no representation or warranty made pursuant to Section 5
herein shall have been breached, (iii) the surviving Person, if other than the
Seller, shall have delivered to the Eligible Lender
15
16
Trustee an Officers' Certificate and an Opinion of Counsel each stating that
such consolidation, merger or succession and such agreement of assumption
comply with this Section and that all conditions precedent, if any, provided
for in these Master Sale Terms relating to such transaction have been complied
with, and that the Rating Agency Condition shall have been satisfied with
respect to such transaction, (iv) if the Seller is not the surviving entity,
such transaction will not result in a material adverse Federal or state tax
consequence to the Purchaser, the Noteholders or the Certificateholders and (v)
if the Seller is not the surviving entity, the Seller shall have delivered to
the Eligible Lender Trustee an Opinion of Counsel either (A) stating that, in
the opinion of such counsel, all financing statements and continuation
statements and amendments thereto have been executed and filed that are
necessary fully to preserve and protect the interest of the Purchaser and the
Eligible Lender Trustee, respectively, in the Loans and reciting the details of
such filings, or (B) stating that, in the opinion of such counsel, no such
action shall be necessary to preserve and protect such interests.
SECTION 11. LIMITATION ON LIABILITY OF SELLER AND OTHERS
The Seller and any director or officer or employee or agent thereof
may rely in good faith on the advice of counsel or on any document of any kind,
prima facie properly executed and submitted by any Person respecting any
matters arising hereunder (provided that such reliance shall not limit in any
way the Seller's obligations under Section 5 herein). The Seller shall not be
under any obligation to appear in, prosecute or defend any legal action that
shall not be incidental to its obligations under these Master Sale Terms or any
Sale Agreement, and that in its opinion may involve it in any expense or
liability. Except as provided herein, the repurchase (or substitution) and
reimbursement obligations of Seller will constitute the sole remedy available
to Purchaser for uncured breaches; provided, however, that the information with
respect to the Loans listed on the Xxxx of Sale may be adjusted in the ordinary
course of business subsequent to the date of the Xxxx of Sale and to the extent
that the aggregate Principal Balance listed on the Xxxx of Sale is less than
the aggregate Principal Balance stated on the Xxxx of Sale, Seller shall remit
such amount to the Eligible Lender Trustee for the benefit of the Purchaser.
Such reconciliation payment shall be made from time to time but no less
frequently than semi-annually.
SECTION 12. LIMITATION OF LIABILITY OF ELIGIBLE LENDER
TRUSTEE
Notwithstanding anything contained herein to the contrary, these
Master Sale Terms and any Sale Agreement have been signed by Chase Manhattan
Bank USA, National Association not in its individual capacity but solely in its
capacity as Eligible Lender Trustee for the Purchaser and the Interim Eligible
Lender Trustee for the Seller, as the case may be, and in no event shall Chase
Manhattan Bank USA, National Association in its individual capacity, have any
16
17
liability for the representations, warranties, covenants, agreements or other
obligations of the Eligible Lender Trustee, the Interim Eligible Lender
Trustee, the Purchaser or of the Seller, respectively, under these Master Sale
Terms or any Sale Agreement or in any of the certificates, notices or
agreements delivered pursuant hereto, as to all of which recourse shall be had
solely to the assets of the Purchaser or the Seller, as the case may be.
SECTION 13. EXPENSES
Except as otherwise provided herein, each party to these Master Sale
Terms or any Sale Agreement shall pay its own expense incurred in connection
with the preparation, execution and delivery of these Master Sale Terms or any
Sale Agreement and the transactions contemplated herein or therein.
SECTION 14. SURVIVAL OF COVENANTS/SUPERSESSION
All covenants, agreements, representations and warranties made herein
and in or pursuant to any Sale Agreements executed pursuant to these Master
Sale Terms shall survive the consummation of the purchase of the Loans provided
for in each Sale Agreement. All covenants, agreements, representations and
warranties made or furnished pursuant hereto by or for the benefit of Seller
shall bind and inure to the benefit of any successors or assigns of Purchaser
and shall survive with respect to each Loan. Each Sale Agreement supersedes
all previous agreements and understandings between Purchaser and Seller with
respect to the subject matter thereof. A Sale Agreement may be changed,
modified or discharged, and any rights or obligations hereunder may be waived,
only by a written instrument signed by a duly authorized officer of the party
against whom enforcement of any such waiver, change, modification or discharge
is sought. The waiver by Purchaser of any covenant, agreement, representation
or warranty required to be made or furnished by Seller or the waiver by
Purchaser of any provision herein contained or contained in any Sale Agreement
shall not be deemed to be a waiver of any breach of any other covenant,
agreement, representation, warranty or provision herein contained or contained
in any Sale Agreement, nor shall any waiver or any custom or practice which may
evolve between the parties in the administration of the terms hereof or of any
Sale Agreement, be construed to lessen the right of Purchaser to insist upon
the performance by Seller in strict accordance with said terms.
SECTION 15. COMMUNICATION AND NOTICE REQUIREMENTS
All communications, notices and approvals provided for hereunder shall
be in writing and mailed or delivered to Seller or Purchaser, as the case may
be, addressed as set forth in the Sale Agreement or at such other address as
either party may hereafter designate by notice to the other party. Notice
given in any such communication, mailed to Seller or Purchaser by appropriately
addressed registered mail, shall be deemed to have been given on the day
following the date of such mailing.
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18
SECTION 16. FORM OF INSTRUMENTS
All instruments and documents delivered in connection with these
Master Sale Terms and any Sale Agreement, and all proceedings to be taken in
connection with these Master Sale Terms and any Sale Agreement and the
transactions contemplated herein and therein, shall be in a form as set forth
in the attachments hereto, and Purchaser shall have received copies of such
documents as it or its counsel shall reasonably request in connection
therewith. Any instrument or document which is substantially in the same form
as an Attachment hereto or a recital herein will be deemed to be satisfactory
as to form.
SECTION 17. AMENDMENT
These Master Sale Terms and any Sale Agreement may be amended by the
parties thereto without the consent of the related Noteholders or
Certificateholders for the purpose of adding any provisions to or changing in
any manner or eliminating any of the provisions of such Master Sale Terms and
Sale Agreements or of modifying in any manner the rights of such Noteholders or
Certificateholders; provided that such action will not, in the opinion of
counsel satisfactory to the related Eligible Lender Trustees, materially and
adversely affect the interest of any such Noteholder or Certificateholder.
In addition, these Master Sale Terms and any Sale Agreement may also
be amended from time to time by the Seller, the Interim Eligible Lender
Trustee, the Eligible Lender Trustee and the Purchaser, with the consent of the
Noteholders of Notes evidencing a majority of the Outstanding Amount of the
Notes and the consent of the Certificateholders of Certificates evidencing a
majority of the Certificate Balance, for the purpose of adding any provisions
to or changing in any manner or eliminating any of the provisions of these
Master Sale Terms or any Sale Agreement or of modifying in any manner the
rights of the Noteholders or the Certificateholders; provided, however, that no
such amendment shall (a) increase or reduce in any manner the amount of, or
accelerate or delay the time of, collections of payments with respect to Loans
or distributions that shall be required to be made for the benefit of the
Noteholders or the Certificateholders or (b) reduce the aforesaid percentage of
the Outstanding Amount of the Notes and the Certificate Balance of
Certificates, the Noteholders or the Certificateholders of which are required
to consent to any such amendment, without the consent of all outstanding
Noteholders and Certificateholders.
Promptly after the execution of any such amendment or consent (or, in
the case of the Rating Agencies, five Business Days prior thereto), the
Eligible Lender Trustee shall furnish written notification of the substance of
such amendment or consent to the Indenture Trustee, each Certificateholder, and
each of the Rating Agencies.
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19
It shall not be necessary for the consent of Certificateholders or
Noteholders pursuant to this Section to approve the particular form of any
proposed amendment or consent, but it shall be sufficient if such consent shall
approve the substance thereof.
Prior to the execution of any amendment to these Master Sale Terms,
the Eligible Lender Trustee shall be entitled to receive and rely upon an
Opinion of Counsel stating that execution of such amendment is authorized or
permitted by this Sale Agreement and the Opinion of Counsel referred to in
Section 7.1 I((i) of the Administration Agreement. The Eligible Lender Trustee
may, but shall not be obligated to, enter into any such amendment which affects
the Eligible Lender Trustee's own rights, duties or immunities under this
Agreement or otherwise.
SECTION 18. NONPETITION COVENANTS
Notwithstanding any prior termination of these Master Sale Terms,
Seller and the Interim Eligible Lender Trustee shall not acquiesce, petition or
otherwise invoke or cause Purchaser to invoke the process of any court or
government authority for the purpose of commencing or sustaining a case against
Purchaser under any Federal or state bankruptcy, insolvency or similar law or
appointing a receiver, liquidator, assignee, trustee, custodian, sequestrator
or other similar official of Purchaser or any substantial part of its property,
or ordering the winding up or liquidation of the affairs of the Purchaser.
Notwithstanding any prior termination of these Master Sale Terms, the
Eligible Lender Trustee and the Purchaser shall not acquiesce, petition or
otherwise invoke or cause Seller to invoke the process of commencing or
sustaining a case against the Seller under any federal or state bankruptcy,
insolvency or similar law or appointing a receiver, liquidator, assignee,
trustee, custodian, sequestrator or other similar official of Seller or any
substantial part of its property, or ordering the winding up or liquidation of
the affairs of the Purchaser.
SECTION 19. ASSIGNMENT
Seller and the Interim Eligible Lender Trustee each hereby assigns its
entire right, title and interest as purchaser and as the Interim Eligible
Lender Trustee under the Purchase Agreement Master Securitization Terms Number
1000 and any Purchase Agreement thereunder to Purchaser as of the date hereof
and acknowledges that the Purchaser and the Eligible Lender Trustee on behalf
of the Purchaser will assign the same, together with the right, title and
interest of the Purchaser and the Eligible Lender Trustee hereunder, to the
Indenture Trustee under the Indenture.
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SECTION 20. GOVERNING LAW
These Master Sale Terms and any Sale Agreements shall be governed by
and construed in accordance with the laws of the State of New York without
reference to its conflict of law provisions, and the obligations, rights and
remedies of the parties, hereunder shall be determined in accordance with such
laws.
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SLM STUDENT LOAN TRUST 1997-4 SLM FUNDING CORPORATION
(Purchaser) (Seller)
by Chase Manhattan Bank USA,
National Association
not in its individual capacity
but solely as Eligible Lender By: /s/ XXXXXXX M.E. XXXXXX, JR.
Trustee -----------------------------
Name:
---------------------------
By:/s/ X.X. XXXXXX Title:
--------------------------- --------------------------
Name:
-------------------------
Title:
------------------------
CHASE MANHATTAN BANK USA, CHASE MANHATTAN BANK USA,
NATIONAL ASSOCIATION NATIONAL ASSOCIATION
(Not in its individual (Not in its individual capacity
capacity but solely as but solely as Interim Eligible
Eligible Lender Trustee) Lender Trustee)
By: /s/ X.X. XXXXXX By: /s/ X.X. XXXXXX
--------------------------- ---------------------------
Name: Name:
------------------------- -------------------------
Title: Title:
------------------------ ------------------------
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ATTACHMENT A
SALE AGREEMENT
DATED AS OF NOVEMBER 12, 1997
SALE AGREEMENT NUMBER 1
Each of the Chase Manhattan Bank USA, National Association as Interim
Eligible Lender Trustee (the "Interim Eligible Lender Trustee") for the
benefit of SLM Funding Corporation (the "Seller") and the Seller hereby
offer for sale to the Eligible Lender Trustee on behalf of SLM Student Loan
Trust 1997-4 ("Purchaser") the entire right, title and interest of the
Seller and the Interim Eligible Lender Trustee in the Loans described in
the Xxxx of Sale and Loan Transmittal Summary Form incorporated herein and,
to the extent indicated below, the Eligible Lender Trustee on behalf of the
Purchaser accepts the Seller's and the Interim Eligible Lender Trustee's
offer. In order to qualify as Eligible Loans, no payment of principal or
interest shall be more than one hundred and twenty (120) days Delinquent as
of the Cutoff Date which date shall be October 27, 1997.
TERMS, CONDITIONS AND COVENANTS
In consideration of the Purchase Price, each of the Seller and the
Interim Eligible Lender Trustee for the benefit of the Seller hereby sells
to the Eligible Lender Trustee for the benefit of the Purchaser the entire
right, title and interest of the Seller and the Interim Eligible Lender
Trustee in the Loans accepted for purchase, subject to all the terms and
conditions of the Sale Agreement Master Securitization Terms Number 1000
("Master Sale Terms") and amendments, each incorporated herein by reference,
among Seller, Interim Eligible Lender Trustee, Purchaser, and the Eligible
Lender Trustee. The Initial Payment of the Loans shall equal $2,551,581,521
(equal to $2,557,863,120 (representing the offering price of the Securities
less underwriters' commissions and reimbursements to the underwriters) less
$6,256,599 (representing the Reserve Account Initial Deposit) less $25,000
(representing the initial deposit into the Collection Account).
This document shall constitute a Sale Agreement as referred to in the
Master Sale Terms and, except as modified herein, each term used herein
shall have the same meaning as in the Master Sale Terms. All references in
the Master Sale Terms to Loans or Eligible Loans shall be deemed to refer to
the Loans governed by this Sale Agreement. Seller hereby makes, as of the
date hereof, all the representations and warranties contained in the Master
Sale Terms and makes such representations and warranties with respect to the
Loans governed by this Sale Agreement.
Each of the Seller and the Interim Eligible Lender Trustee for the
benefit of the Seller authorizes the Eligible Lender Trustee for the benefit
of the Purchaser to use a copy of the Xxxx of Sale, including the Loan
Transmittal Summary Form attached to the
23
Xxxx of Sale (in lieu of OE Form 1074) as official notification to the
applicable Guarantors of assignment to the Eligible Lender Trustee for the
benefit of the Purchaser of the Loans on the date of purchase.
The parties hereto intend that the transfer of Loans described in the
Xxxx of Sale and Loan Transmittal Summary Form be, and be construed as, a
valid sale of such Loans. However, in the event that notwithstanding the
intentions of the parties, such transfer is deemed to be a transfer for
security, then each of the Interim Eligible lender Trustee and the Seller
hereby grants to the Eligible Lender Trustee on behalf of the Purchaser a
first priority security interest in and to all Loans described in the Xxxx
of Sale and Loan Transmittal Summary Form to secure a loan in an amount
equal to the Purchase Price of such Loans.
2
24
SLM FUNDING CORPORATION SLM STUDENT LOAN TRUST 1997-4
----------------------- -----------------------------
(Seller) (Purchaser)
by Chase Manhattan Bank USA,
National Association
not in its individual capacity but
By: solely as Eligible Lender Trustee
---------------------------
Name:
-------------------------
Title: By:
------------------------ ----------------------------
Name:
---------------------------
Title:
--------------------------
CHASE MANHATTAN BANK USA, CHASE MANHATTAN BANK USA,
------------------------ ------------------------
NATIONAL ASSOCIATION NATIONAL ASSOCIATION
-------------------- -------------------
(not in its individual (not in its individual
capacity but solely as Interim capacity but solely as Eligible
Eligible Lender Trustee) Lender Trustee)
By: By:
--------------------------- ---------------------------
Name: Name:
------------------------- -------------------------
Title: Title:
------------------------ ------------------------
3
25
SALE AGREEMENT NUMBER 1
BLANKET ENDORSEMENT DATED NOVEMBER 00, 0000
XXX Funding Corporation ("Seller") and Chase Manhattan Bank USA,
National Association as Interim Eligible Lender Trustee for the benefit of the
Seller, by execution of this instrument, hereby endorses the attached
promissory note which is one (1) of the promissory notes ("the Notes")
described in the Xxxx of Sale executed by the Seller and the Interim Eligible
Lender Trustee for the benefit of the Seller in favor of Chase Manhattan Bank
USA, National Association as Eligible Lender Trustee on behalf of SLM Student
Loan Trust 1997-4 (the "Purchaser"). This endorsement is in blank,
unrestricted form and without recourse except as provided in Section 6 of the
Master Sale Terms referred to in the Sale Agreement among Seller, Purchaser,
Interim Eligible Lender Trustee, and the Eligible Lender Trustee which covers
this promissory note.
This endorsement may be effected by attaching either this instrument
or a facsimile hereof to each or any of the Notes.
Notwithstanding the foregoing, the Interim Eligible Lender Trustee for
the benefit of the Seller agrees to individually endorse each Note in the form
provided by Purchaser as Purchaser may from time to time require or if such
individual endorsement is required by the Guarantor of the Note.
THE SALE AND PURCHASE OF THE LOANS SHALL BE SUBJECT TO THE TERMS, CONDITIONS
AND COVENANTS, INCLUDING THE BLANKET ENDORSEMENT, AS SET FORTH IN THE SALE
AGREEMENT MASTER LOAN SECURITIZATION TERMS 1000. BY EXECUTION HEREOF, THE
SELLER ACKNOWLEDGES THAT THE SELLER HAS READ, UNDERSTANDS AND AGREES TO BE
BOUND BY ALL TERMS, CONDITIONS AND COVENANTS OF THE SALE AGREEMENT (" SALE
AGREEMENT"). THE SALE AND PURCHASE SHALL BE CONSUMMATED UPON PURCHASER'S
PAYMENT TO SELLER OF THE INITIAL PAYMENT AS DEFINED IN THE MASTER SALE TERMS
AND, UNLESS OTHERWISE AGREED BY SELLER AND PURCHASER, SHALL BE EFFECTIVE AS OF
THE DATE OF THE XXXX OF SALE.
SELLER PURCHASER
-------------------------------- ---------------------------------
Chase Manhattan Bank USA,
Chase Manhattan Bank USA, National
Association not in its individual National Association
capacity but solely in its individual not in its individual capacity
capacity but solely as Interim Eligible but solely as Eligible Lender
Lender Trustee for the Benefit of SLM Trustee on behalf of SLM
Funding Corporation Student Loan Trust 1997-4
Lender Code: 833 253
By:
---------------------------
By: (Signature of Authorized
----------------------------- Signatory for Purchaser)
(Signature of Authorized
Officer)
Name:
Name: -------------------------
---------------------------
Title:
------------------------
Title:
--------------------------
Date of Purchase: Nov. 12, 1997
NOTE: Boxed areas on this form are to be completed by Purchaser.
26
ATTACHMENT B
XXXX OF SALE DATED NOVEMBER 12, 1997
The undersigned SLM Funding Corporation ("Seller") and Chase Manhattan
Bank USA, National Association as Interim Eligible Lender Trustee for the
benefit of the Seller under the Interim Trust Agreement dated as of November 1,
1997 ("Interim Eligible Lender Trustee"), for value received and pursuant to
the terms and conditions of Sale Agreement Number 1 ("Sale Agreement") among
Seller, the Interim Eligible Lender Trustee, SLM Student Loan Trust 1997-4
("Purchaser") and Chase Manhattan Bank USA, National Association as the
Eligible Lender Trustee, do hereby sell, assign and convey to the Eligible
Lender Trustee on behalf of Purchaser and its assignees all right, title and
interest of Seller and the Interim Eligible Lender Trustee, including the
insurance interest of Seller and the Interim Eligible Lender Trustee under the
Federal Family Education Loan Program (20 U.S.C. 1071 et seq.), in the Loans
identified herein which the Eligible Lender Trustee on behalf of Purchaser has
accepted for purchase. The portfolio accepted for purchase by the Eligible
Lender Trustee on behalf of Purchaser and the effective date of sale and
purchase are described below and the individual Accounts are listed on the
Schedule A attached hereto.
Seller hereby makes the representations and warranties set forth in
Section 5 of the Sale Agreement Master Securitization Terms Number 1000
incorporated by reference in the Sale Agreement. Seller and the Interim
Eligible Lender Trustee authorize the Eligible Lender Trustee on behalf of
Purchaser to use a copy of this document (in lieu of OE Form 1074) as official
notification to the Guarantor(s) of assignment to the Eligible Lender Trustee
on behalf of Purchaser of the Loans on the date of purchase.
LISTING OF LOANS
OFFERED BY ACCEPTED BY ELIGIBLE
SELLER LENDER TRUSTEE
NUMBER OF PRINCIPAL NUMBER OF PRINCIPAL
LOAN TYPE LOANS* BALANCE** LOANS* BALANCE**
----------------------------------------------------------------------------------
SUBSIDIZED XXXXXXXX
---------- --------
Interim 246,456 831,888,241 246,456 831,888,241
Repayment 295,381 814,458,214 295,381 814,458,214
------- ----------- ------- -----------
541,837 1,646,346,455 541,837 1,646,346,455
UNSUBSIDIZED XXXXXXXX
---------------------
Deferred 115,183 444,572,120 115,183 444,572,120
Repayment 57,489 168,802,236 57,489 168,802,236
------ ----------- ------ -----------
172,672 613,374,356 172,672 613,374,356
PLUS/SLS
--------
Deferred 13,034 64,468,389 13,034 64,468,389
Non-Deferred 43,998 178,450,387 43,998 178,450,387
------ ----------- ------ -----------
57,032 242,918,776 57,032 242,918,776
XXXXXXX-
--------
DATION 0 0 0 0
------ - - - -
TOTAL 771,541 $2,502,639,587 771,541 $2,502,639,587
------- -------------- ------- --------------
ADDITIONAL LOAN CRITERIA
Not in claims status, not previously rejected
Not in litigation
Last disbursement is greater than 120 days from cutoff date
Loan is not swap-pending
*Based upon Seller's estimated calculations, which may be adjusted upward or
downward based upon Purchaser's reconciliation.
**Includes interest to be capitalized.
27
Guarantor(s):
American Student Assistance Guarantor
California Student Aid Commission
Connecticut Student Loan Foundation
Educational Credit Management Corporation
Florida Department of Education Office of Student Financial Assistance
Great Lakes Higher Education Corporation
Illinois Student Assistance Commission
Iowa College Student Aid Commission
Kentucky Higher Education Assistance Authority
Louisiana Student Financial Assistance Commission
Michigan Higher Education Assistance Authority
Missouri Coordinating Board for Higher Education
New Jersey Higher Education Assistance Authority
N.Y. State Higher Education Services Corporation
Northstar Guarantee Inc.
Northwest Education Loan Association
Oklahoma State Regents for Higher Education
Oregon State Scholarship Commission
Pennsylvania Higher Education Assistance Agency
Student Loan Guarantee Foundation of Arkansas, Inc.
Tennessee Student Assistance Corporation
Texas Guaranteed Student Loan Corporation
United Student Aid Funds, Inc.
SELLER PURCHASER
----------------------------------
Chase Manhattan Bank USA, National
Association not in its Chase Manhattan Bank USA,
individual capacity but solely as National Association,
Interim Eligible Lender Trustee on not in its individual capacity
behalf of SLM Funding Corporation but solely as Eligible Lender
Trustee on behalf of SLM
Lender Code: Student Loan Trust 1997-4
-------------
By: By:
------------------------------ --------------------------
(Signature of Authorized Officer) (Signature of Authorized
Signatory for Purchaser)
Name:
----------------------------
Name:
-------------------------
Title:
---------------------------
Title:
------------------------
SLM FUNDING CORPORATION
Date of Purchase: Nov. 12, 1997
By:
------------------------------
(Signature of Authorized Officer)
Name:
----------------------------
Title:
---------------------------
NOTE: Boxed areas are for completion by Purchaser
