A book-entry Sallie Mae security is a type of financial instrument issued by the Student Loan Marketing Association, commonly known as Sallie Mae. These securities are not represented by physical certificates but are instead recorded electronically in a book-entry system. This system simplifies the transfer and management of these securities, making transactions more efficient and secure.
Book-entry Sallie Mae securities are primarily used in the context of student loans and higher education financing. They are relevant in financial markets and investment practices, where investors may purchase these securities as a means of funding education loans. Legal professionals may encounter these securities in transactions involving student loan portfolios or in the context of financial regulations governing securities.
Here are a couple of examples of abatement:
Example 1: An investor purchases a book-entry Sallie Mae security as part of their investment portfolio, allowing them to earn interest from student loans.
Example 2: A financial institution manages a portfolio of book-entry Sallie Mae securities, facilitating the funding of student loans for borrowers (hypothetical example).
Book-entry Sallie Mae securities are governed by regulations found in Title 31, Code of Federal Regulations, specifically under Part 354. These regulations outline the management and transfer of book-entry securities.
| Term | Definition | Key Differences |
|---|---|---|
| Book-entry security | A security that is recorded electronically. | Includes various types of securities, not limited to Sallie Mae. |
| Physical security | A security represented by a physical certificate. | Requires physical transfer for ownership changes, unlike book-entry securities. |
If you are considering investing in book-entry Sallie Mae securities, it is advisable to research the current market conditions and consult with a financial advisor. You can also explore US Legal Forms for templates that may assist you in managing your investments effectively. If your situation is complex, seeking professional legal help is recommended.
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| Attribute | Details |
|---|---|
| Issuer | Student Loan Marketing Association (Sallie Mae) |
| Type | Book-entry security |
| Regulatory Framework | 31 CFR Part 354 |
| Transfer Method | Electronic, no physical certificates |
It is a financial instrument issued by Sallie Mae that is maintained electronically, rather than through physical certificates.