1 SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 10-K (Mark One) [x] Annual report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 (Fee required) For the fiscal year ended December 31, 1996 or ------------------------- [ ] Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 (No fee required) For the transition period from to ------------------- ------------------ Commission file numbers 33-95474, 333-2502 ------------------------------------------------- SLM FUNDING CORPORATION* - ----------------------------------------------------------------------------- (Exact Name of Registrant as Specified in Its Charter) (*formerly known as Sallie Mae Funding Corporation) (originator of the Sallie Mae Student Loan Trust 1995-1, the Sallie Mae Student Loan Trust 1996-1, the SLM Student Loan Trust 1996-2, the SLM Student Loan Trust 1996-3, and the SLM Student Loan Trust 1996-4) Delaware 23-2815650 - ------------------------------------------- ------------------------------- (State of Other Jurisdiction of (I.R.S. Employer Incorporation or Organization) Identification No.) 777 Twin Creek Drive Killeen, Texas 76543 - ------------------------------------------- ------------------------------- (Address of Principal Executive Offices) (Zip Code) (817) 554 4500 - ------------------------------------------------------------------------------- (Registrant's Telephone Number, Including Area Code) Securities registered pursuant to Section 12(b) of the Act: None Securities registered pursuant to Section 12(g) of the Act: None Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes X No ------------- ---------- No documents are incorporated by reference into this Form 10-K. State the aggregate market value of the voting stock held by non-affiliates of the Registrant: None. Page 1 of 8 Exhibit Index appears on Page 8 2 This Annual Report on Form 10-K is filed in reliance upon (1) certain no-action letters issued by the Office of Chief Counsel, Division of Corporate Finance of the Securities and Exchange Commission stating that the Division will not object if periodic reports filed by the registrant pursuant to Sections 13 and 15(d) of the Securities and Exchange Act of 1934 are filed in the manner set forth in such letters and the requests for such letters and (2) the Registrant's filing letter accompanying the Registrant's Current Reports on Form 8-K filed with the Commission on or about January 26, 1996, March 12, 1996, April 25, 1996, July 31, 1996 and October 29, 1996 in which the Registrant described the manner in which it intended to file such periodic reports. PART I. ITEM 2. PROPERTIES The property of the Sallie Mae Student Loan Trust 1995-1, the Sallie Mae Student Loan Trust 1996-1, the SLM Student Loan Trust 1996-2, the SLM Student Loan Trust 1996-3 and the SLM Student Loan Trust 1996-4 (collectively, the "Trusts") consist solely of pools of education loans to students and parents of students made under the Federal Family Education Loan Program, all funds collected in respect thereof and monies on deposit in certain trust accounts. For more information regarding the property of the Trusts, see the Annual Statements of Compliance (the "Annual Statements of Compliance") required by Section 3.2 of the Administration Agreements (the "Administration Agreements"), dated as of October 26, 1995, March 6, 1996, April 26, 1996, July 9, 1996 and October 3, 1996, by and among the respective Trusts, the Student Loan Marketing Association (the "Administrator"), Chase Manhattan Bank USA, National Association, not in its individual capacity but solely as Trustee (the "Eligible Lender Trustee"), Sallie Mae Servicing Corporation (the "Servicer"), SLM Funding Corporation (the "Registrant") and Bankers Trust Company, not in its individual capacity but solely as Indenture Trustee (the "Indenture Trustee"), attached as Exhibit 19.1 hereto. ITEM 3. LEGAL PROCEEDINGS. The Registrant knows of no material pending legal proceedings involving the Registrant or its property. ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY-HOLDERS Nothing to report. Page 2 of 8 Exhibit Index appears on Page 8 3 PART II. ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY AND RELATED STOCKHOLDER MATTERS At December 31, 1996, the Registrant was a beneficial owner of the Trusts' Floating Rate Student Loan-Backed Certificates ("Certificates"), and there was one (1) registered holder of the Certificates, CEDE & Co., as nominee of The Depository Trust Company ("DTC"). There were seventeen (17) persons registered on the books of DTC as record owners of Certificates. There is no established trading market for the Certificates. ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE. Nothing to report. PART III. ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT. At December 31, 1996, the Certificates held by the Registrant were registered in the name of CEDE and Co., as nominee of DTC. The books of DTC indicate that nineteen (19) participant institutions are the record owners of more than 5% of the Certificates. - --------------------------------------------------------------------------- (1) (2) (3) (4) Title of Class Name and Amount and Percent of Address of Nature of Class Beneficial Beneficial Owner Ownership - --------------------------------------------------------------------------- SALLIE MAE STUDENT LOAN TRUST 1995-1 CUSIP 795452AC5 $35,000,000 Floating Rate Chase Manhattan Bank $14,650,000 principal 41.86% Student Loan- One Chase Manhattan Plaza amount of certificates Backed Certificates 3B-Proxy Dept New York, NY 10081 Floating Rate SSB-Custodian $18,500,000 principal 52.86% Student Loan- c/o ADP Proxy Services amount of certificates Backed Certificates 51 Mercedes Way Edgewood, NY 11717 Page 3 of 8 4 SALLIE MAE STUDENT LOAN TRUST 1996-1 CUSIP 795452AF8 $52,500,000 Floating Rate Chase Manhattan Bank $25,000,000 principal 47.62% Student Loan- One Chase Manhattan Plaza amount of certificates Backed Certificates 3B-Proxy Dept New York, NY 10081 Floating Rate Chase/Chemical Bank $25,000,000 principal 47.62% Student Loan- Auto Settle Dept amount of certificates Backed Certificates 4 New York Plaza 4th Floor New York, NY 10004 SLM STUDENT LOAN TRUST 1996-2 CUSIP 78442GAC0 $53,030,000 Floating Rate Bank of New York $3,000,000 principal 5.66% Student Loan- 925 Patterson Plank Rd amount of certificates Backed Certificates Secaucus, NJ 07094 Floating Rate Boston Safe Deposit & Trust Co $23,000,000 principal 43.37% Student Loan- c/o ADP Proxy Services amount of certificates Backed Certificates 51 Mercedes Way Edgewood, NY 11717 Floating Rate Chase/Chemical Bank $21,499,000 principal 40.54% Student Loan- Auto Settle Dept amount of certificates Backed Certificates 4 New York Plaza 4th Floor New York, NY 10004 Floating Rate Citibank, N.A. $5,000,000 principal 9.43% Student Loan- 111 Wall Street amount of certificates Backed Certificates 20th Floor, Zone 9 New York, NY 10043 SLM STUDENT LOAN TRUST 1996-3 CUSIP 78442GAF3 $52,750,000 Floating Rate Boston Safe Deposit & Trust Co $12,000,000 principal 22.75% Student Loan- c/o ADP Proxy Services amount of certificates Backed Certificates 51 Mercedes Way Edgewood, NY 11717 Floating Rate Chase/Chemical Bank $19,000,000 principal 36.02% Student Loan- Auto Settle Dept amount of certificates Backed Certificates 4 New York Plaza 4th Floor New York, NY 10004 Page 4 of 8 5 Floating Rate Citibank, N.A. $5,000,000 principal 9.48% Student Loan- 111 Wall Street amount of certificates Backed Certificates 20th Floor, Zone 9 New York, NY 10043 Floating Rate Huntington National Bank $5,500,000 principal 10.43% Student Loan- 41 South High Street, 10th Fl amount of certificates Backed Certificates Columbus, OH 43287 Floating Rate NBD Bank, N.A. $3,000,000 principal 5.69% Student Loan- 611 Woodward Ave amount of certificates Backed Certificates Detroit, MI 48226 Floating Rate SSB-Custodian $3,000,000 principal 5.69% Student Loan- c/o ADP Proxy Services amount of certificates Backed Certificates 51 Mercedes Way Edgewood, NY 11717 SLM STUDENT LOAN TRUST 1996-4 CUSIP 78442GAJ5 $52,700,000 Floating Rate Boston Safe Deposit & Trust Co $8,000,000 principal 15.18% Student Loan- c/o ADP Proxy Services amount of certificates Backed Certificates 51 Mercedes Way Edgewood, NY 11717 Floating Rate Chase/Chemical Bank $10,000,000 principal 18.98% Student Loan- Auto Settle Dept amount of certificates Backed Certificates 4 New York Plaza 4th Floor New York, NY 10004 Floating Rate Citibank, N.A. $4,000,000 principal 7.60% Student Loan- 111 Wall Street amount of certificates Backed Certificates 20th Floor, Zone 9 New York, NY 10043 Floating Rate Custodial Trust Company $14,300,000 principal 27.13% Student Loan- 101 Carnegie Center amount of certificates Backed Certificates Princeton, NJ 08540 Floating Rate NBD Bank, N.A. $9,473,000 principal 17.97% Student Loan- 611 Woodward Ave amount of certificates Backed Certificates Detroit, MI 48226 Page 5 of 8 6 ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS. Nothing to Report. ITEM 14. EXHIBITS, FINANCIAL STATEMENT SCHEDULES AND REPORTS ON FORM 8-K (a) Exhibits. The following documents are filed as part of this Annual Report on Form 10-K: Designation Description ----------- ----------- Exhibit 19.1 Annual Statements of Compliance Exhibit 19.2 Annual Independent Certified Public Accountant's Report (b) Reports on Form 8-K. Current Reports on Form 8-K filed with the Commission on or about January 26, 1996, March 12, 1996, April 25, 1996, July 31, 1996 and October 31, 1996. Page 6 of 8 7 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. Dated: April 10, 1997 SLM FUNDING CORPORATION By: /s/ Denise B. McGlone ---------------------------- Name: Denise B. McGlone Title: President and Director Page 7 of 8 8 INDEX TO EXHIBITS Sequentially Exhibit Numbered Number Exhibit Page - ------ ------- ------------ 19.1 Annual Statements of Compliance 19.2 Annual Independent Certified Public Accountant's Report Page 8 of 8