# 31 C.F.R. § 354.5 (2026): Obligations of Sallie Mae; no adverse claims

> Federal · Regulations · In force

URL: https://www.frixlaw.com/law-library/statutes/CFR_T31_P354_S354_5

## Section

- **Citation:** 31 C.F.R. § 354.5 (2026)
- **Heading:** Obligations of Sallie Mae; no adverse claims
- **Jurisdiction:** Federal
- **Kind:** Regulations
- **Status:** In force
- **Text as of:** August 14, 2026
- **Source:** Compiled text
- **Location:** Title 31 CFR: Money and Finance: Treasury / Chapter II: FISCAL SERVICE, DEPARTMENT OF THE TREASURY / Part 354: REGULATIONS GOVERNING BOOK-ENTRY SECURITIES OF THE STUDENT LOAN MARKETING ASSOCIATION (SALLIE MAE) / § 354.5: § 354.5   Obligations of Sallie Mae › no adverse claims.

## Text

(a) Except in the case of a security interest in favor of the United States or a Federal Reserve Bank or otherwise as provided in § 354.4(c)(1), for the purposes of this part 354, Sallie Mae and the Federal Reserve Banks shall treat the Participant to whose Securities Account an interest in a Book-entry Sallie Mae Security has been credited as the person exclusively entitled to issue a Transfer Message, to receive interest and other payments with respect thereof and otherwise to exercise all the rights and powers with respect to such Security, notwithstanding any information or notice to the contrary. Neither the Federal Reserve Banks nor Sallie Mae is liable to a Person asserting or having an Adverse Claim to a Security Entitlement or to a Book-entry Sallie Mae Security in a Participant's Securities Account, including any such claim arising as a result of the transfer or disposition of a Book-entry Sallie Mae Security by a Federal Reserve Bank pursuant to a Transfer Message that the Federal Reserve Bank reasonably believes to be genuine.
(b) The obligation of Sallie Mae to make payments of interest and principal with respect to Book-entry Sallie Mae Securities is discharged at the time payment in the appropriate amount is made as follows:
(1) Interest on Book-entry Sallie Mae Securities is either credited by a Federal Reserve Bank to a Funds Account maintained at such Bank or otherwise paid as directed by the Participant.
(2) Book-entry Sallie Mae Securities are redeemed at maturity or pursuant to a call for redemption in accordance with their terms by a Federal Reserve Bank withdrawing the securities from the Participant's Securities Account in which they are maintained and by either crediting the amount of the redemption proceeds, including both principal and interest where applicable, to a Funds Account at such Bank or otherwise paying such principal and interest, as directed by the Participant.

## Nearby sections

- [31 C.F.R. § 354.0 (2026) § 354.0   Applicability; maintenance of Sallie Mae Securities.](https://www.frixlaw.com/law-library/statutes/CFR_T31_P354_S354_0.md)
- [31 C.F.R. § 354.1 (2026) § 354.1   Definitions of terms.](https://www.frixlaw.com/law-library/statutes/CFR_T31_P354_S354_1.md)
- [31 C.F.R. § 354.2 (2026) § 354.2   Law governing rights and obligations of Federal Reserve Banks, and Sallie Mae; rights of any Person against Federal Reserve Banks and Sallie Mae.](https://www.frixlaw.com/law-library/statutes/CFR_T31_P354_S354_2.md)
- [31 C.F.R. § 354.3 (2026) § 354.3   Law governing other interests.](https://www.frixlaw.com/law-library/statutes/CFR_T31_P354_S354_3.md)
- [31 C.F.R. § 354.4 (2026) § 354.4   Creation of Participant's Security Entitlement; security interests.](https://www.frixlaw.com/law-library/statutes/CFR_T31_P354_S354_4.md)
- [31 C.F.R. § 354.5 (2026) § 354.5   Obligations of Sallie Mae; no adverse claims.](https://www.frixlaw.com/law-library/statutes/CFR_T31_P354_S354_5.md)
- [31 C.F.R. § 354.6 (2026) § 354.6   Authority of Federal Reserve Banks.](https://www.frixlaw.com/law-library/statutes/CFR_T31_P354_S354_6.md)
- [31 C.F.R. § 354.7 (2026) § 354.7   Withdrawal of eligible Book-entry Sallie Mae Securities for conversion to definitive form.](https://www.frixlaw.com/law-library/statutes/CFR_T31_P354_S354_7.md)
- [31 C.F.R. § 354.8 (2026) § 354.8   Waiver of regulations.](https://www.frixlaw.com/law-library/statutes/CFR_T31_P354_S354_8.md)
- [31 C.F.R. § 354.9 (2026) § 354.9   Liability of Sallie Mae and Federal Reserve Banks.](https://www.frixlaw.com/law-library/statutes/CFR_T31_P354_S354_9.md)
- [31 C.F.R. § 354.10 (2026) § 354.10   Additional provisions.](https://www.frixlaw.com/law-library/statutes/CFR_T31_P354_S354_10.md)

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Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/CFR_T31_P354_S354_5. Check the current official text before relying on it. Not legal advice.