SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-K
(Mark One)
[X] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended December 31, 1998
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from ______ to _______
Commission File No. 33-97296
HOUSEHOLD CREDIT CARD MASTER TRUST I
(Exact name of Registrant as specified in Department
of the Treasury, Internal Revenue Service Form SS-4)
HOUSEHOLD FINANCE CORPORATION
(Servicer of the Trust)
(Exact name as specified in Servicer's charter)
DELAWARE 36-3670374
(State or other jurisdiction of (I.R.S. Employer
incorporation of Servicer) Identification Number of
Registrant)
2700 SANDERS ROAD, PROSPECT HEIGHTS, ILLINOIS 60070
(Address of principal executive offices of (Zip Code)
Servicer)
Servicer's telephone number, including area code (847) 564-5000
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 _____
The aggregate principal amount of the Certificates held by non-
affiliates of the Servicer as of December 31, 1998 was
approximately $1.9 billion.
<PAGE>
INTRODUCTORY NOTE
Household Card Funding Corporation (the "Transferor") is the
transferor under a Pooling and Servicing Agreement (the
"Agreement") dated as of December 1, 1995, by and among the
Transferor, Household Finance Corporation, as Servicer (the
"Servicer") and The Bank of New York, as trustee (the "Trustee"),
as supplemented by the Series Supplements, providing for the
issuance of Credit Card Participation Certificates (the
"Certificates"), and is the originator of the trust called the
Household Credit Card Master Trust I (the "Registrant" or the
"Trust").
Each Certificate represents an undivided interest in the
Trust. The Series 1995-1 Supplement dated as of December 1, 1995,
(the "Series 1995-1 Supplement") among the Transferor, the Servicer
and the Trustee created a Series of Investor Certificates
designated as Household Credit Cared Master Trust, Series 1995-
1;consisting of two classes; a senior class designated as Floating
Rate Class A Credit Card Participation Certificates, Series 1995-1
and a subordinated class designated as Floating Rate Class B Credit
Card Participation Certificates, Series 1995-1. In additional,
there is a Seller Certificate outstanding representing an undivided
interest in the Trust that is not otherwise represented by the
Series 1995-1 Investor Certificates. The Registrant has prepared
this Form 10-K in reliance upon various no-action letters issued by
the Securities and Exchange Commission (the "Commission") to other
trusts which are substantially similar to the Trust. Items
designated herein as "Not Applicable" have been omitted as a result
of this reliance.
<PAGE>
PART I
Item 1. Business.
Not Applicable.
Item 2. Properties.
Not Applicable.
Item 3. Legal Proceedings.
The Servicer is not aware of any material pending legal
proceedings involving either the Registrant, the Trustee,
the Seller or the Servicer with respect to the
Certificates or the Registrant's property.
Item 4. Submission of Matters to a Vote of Security Holders.
No vote or consent of the holders of the Certificates
(the "Certificateholders") was solicited for any purpose
during the year ended December 31, 1998.
PART II
Item 5. Market for Registrant's Common Equity and Related
Stockholder Matters.
To the best knowledge of the Servicer, there is no
established public trading market for the Certificates.
As of February 3, 1999, there were 5 Class A
Certificateholders and 8 Class B Certificateholders, some
of whom may be holding Certificates for the accounts of
others.
Item 6. Selected Financial Data.
Not Applicable.
Item 7. Management's Discussion and Analysis of Financial
Condition and Results of Operations.
Not Applicable.
<PAGE>
Item 8. Financial Statements and Supplementary Data.
Not Applicable.
Item 9. Changes in and Disagreements with Accountants on
Accounting and Financial Disclosure.
None.
PART III
Item 10. Directors and Executive Officers of the Registrant.
Not Applicable.
Item 11. Executive Compensation.
Not Applicable.
Item 12. Security Ownership of Certain Beneficial Owners and
Management.
The following table sets forth (i) the name and address
of each entity owning more than 5% of the outstanding
principal amount of the Class A or the Class B
Certificates; (ii) the principal amount of Certificates
owned by each and (iii) the percent that the principal
amount of Certificates owned represents of the
outstanding principal amount of the Class A or the Class
B Certificates. The information set forth in the table
is based upon information obtained by the Servicer from
the Trustee and from The Depository Trust Company as of
February 3, 1999. The Servicer is not aware of any
Schedules 13D or 13G filed with the Securities and
Exchange Commission in respect of the Certificates.
<PAGE>
Amount Owned
All dollar amounts are
in thousands
Name and Address Principal Percent
Class A Certificateholders
Bank of New York $1,397,000 82.17
925 Patterson Plank Road
Secaucus, NJ 07094
Chase Manhattan Bank, N.A. $ 300,000 17.65
4 New York Plaza - 13th Floor
New York, NY 10004
<PAGE>
Amount Owned
All dollar amounts are
in thousands
Name and Address Principal Percent
Class B Certificateholders
Bankers Trust Company $ 26,175 12.21
c/o BT Services Tennessee Inc.
648 Grassmere Park Drive
Nashville, TN 37211
Bankers Trust Co./Investment A/C $ 15,000 7.00
16 Wall Street - 5th Floor
New York, Ny 10005
Chase Manhattan Bank $ 58,286 27.20
4 New York Plaza - 13th Floor
New York, NY 10004
NBD Bank $ 25,000 11.67
Municipal Bond Department
611 Woodward Avenue
Detroit, MI 48226
Swiss American Securities, Inc. $ 72,000 33.60
100 Wall Street
New York, NY 10005
Item 13. Certain Relationships and Related Transactions.
None or Not Applicable.
<PAGE>
PART IV
Item 14. Exhibits, Financial Statement Schedules, and Reports on
Form 8-K.
(a) List the following documents filed as a part of the
report:
(1) Financial Statements
Not Applicable.
(2) Financial Statement Schedules
Not Applicable.
(3) The Servicer is obligated to prepare
an Annual Statement to Certificateholders for
the year 1998, and Independent Public
Accountants are required to prepare an Annual
Servicing Report pertaining to the compliance
of the Servicer with its servicing obligations
pursuant to the Agreement. Copies of said
documents are or will be filed as exhibits to
this Form 10-k when they are available.
(b) The Registrant filed the following current reports
on Form 8-K for the fourth quarter of 1998:
Date of Reports Items Covered
October 15, 1998 Item 7 -- Statement to
November 16, 1998 Certificateholders with respect
December 15, 1998 to distributions made on
October 15, 1998, November 16,
1998 and December 15, 1998.
(c) (1) Exhibit 99. Copy of Annual Statement to
Certificateholders for the year 1998.
(2) Exhibit 99.1. Copy of Annual Servicing Report
for the year 1998.
(d) Not Applicable.
<PAGE>
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the
Securities Exchange Act of 1934, the Servicer has duly caused this
report to be signed on behalf of the Household Credit Card Trust
1995-1 by the undersigned, thereunto duly authorized.
HOUSEHOLD FINANCE CORPORATION,
as Servicer of and on behalf of the
HOUSEHOLD CREDIT CARD TRUST 1995-1
(Registrant)
Date: February 25, 1999 By:/s/ John W. Blenke
John W. Blenke
Assistant Secretary
U:\WP\HFS088\95-10K\CC95-1
<PAGE>
Exhibit Index
Exhibit No. Exhibit Page No.
99 Copy of Annual Statement to
Certificateholders for the year
ended December 31, 1998.
99.1 Copy of Annual Servicing Report
for the year ended December 31, 1998
Household Finance Corporation
HFC Card Funding Corporation
Household Credit Card Master
Trust, Series 1995-1
Original Class A Principal
Number of Class A Bonds (000's)
Original Class B Principal
Number of Class B Bonds (000's)
Distribution Date 12/15/98 Total
CLASS A
Beginning Class A Principal 700,000,000.00
Outstanding
Beginning Class A Pool Factor 0.46666667
Class A Certificates Exchanged 0.00 800,000,000.00
Class A Principal Distributions 0.00 0.00
Class A Principal Payment Factor 0.00000000 0.00
(per 1,000 Bond)
Ending Class A Principal 700,000,000.00 700,000,000.00
Outstanding
Ending Class A Pool Factor 0.46666667 0.46666667
Class A Interest 3,071,959.53 84,544,112.44
Class A Interest Payment Factor 2.04797302 56.36274163
(per 1,000 Bond)
CLASS B
Beginning Class B Principal 214,286,000.00
Outstanding
Beginning Class B Pool Factor 1.00000000
Class B Principal Distributions 0.00 0.00
Class B Principal Payment Factor 0.00000000 0.00000000
(per 1,000 Bond)
Ending Class B Principal 214,286,000.00 214,286,000.00
Outstanding
Ending Class B Pool Factor 1.00000000 1.00000000
Class B Interest 971,468.50 12,970,363.48
Class B Interest Payment Factor 4.533513611 60.53
(per 1,000 Bond)
Independent Accountants' Report on Applying Agreed-Upon
Procedures
To Household Finance Corporation:
We have performed procedures enumerated below in items A. and B. in
conjunction with Section 3.06 of the Pooling and Servicing
Agreement,
dated December 1, 1995, as supplemented (the "Agreement").
A.We have audited, in accordance with generally accepted auditing
standards, the consolidated financial statements of Household
Finance
Corporation (the "Servicer") and subsidiaries as of December 31,
1998,
and have issued our report thereon dated January 20, 1999. We
have not
audited any financial statements of the Servicer as of any date
or for
any period subsequent to December 31, 1998, or performed any
audit
procedures subsequent to the date of our report on those
statements.
In connection with our audit, nothing came to our attention that
caused
us to believe that the Servicer was not in compliance with any of
the
terms, covenants, provisions, or conditions in Sections 3.01,
3.02,
3.04, 3.09, 3.10, 4.02, 4.03, 4.04, and 8.08 (to the extent such
sections are applicable to Household Finance Corporation as
Servicer)
of the Agreement, or Sections 3, 4.08, 4.09, 4.10, 4.11, 4.12,
4.13,
4.14, 4.15, 4.16, and 4.17 (to the extent such sections are
applicable
to Household Finance Corporation as Servicer) of the Series
1995-1,
Series 1996-A, and Series 1996-B Supplements, in conjunction with
the
servicing of consumer revolving credit card receivables owned by
the
Household Credit Card Master Trust I insofar as they relate to
accounting matters. It should be noted, however, that our audit
was
not directed primarily toward obtaining knowledge of such
noncompliance.
As a part of our audit, we obtained an understanding of the
Servicer's
internal control structure over the Servicer's entire consumer
revolving credit card portfolio, including those loans serviced
under
the Agreement, and the related Supplements, to the extent
considered
necessary in order to assess control risk as required by
generally
accepted auditing standards. The purpose of our consideration of
the
internal control structure, which includes the accounting
systems, was
to determine the nature, timing, and extent of the auditing
procedures
necessary for expressing an opinion on the financial statements.
Such
audit procedures, however, were not performed in order to express
a
separate opinion on the Household Credit Card Master Trust I.
Our audit disclosed no exceptions or errors in records relating
to
credit card receivables serviced by the Servicer that, in our
opinion,
Section 3.06 of the Agreement required us to report.
B. We have performed the procedure described in the following
paragraph, which was agreed to by the management of the Servicer,
the Bank of New York as Trustee, and the Credit Enhancement
Provider
(together, the "Specified Users"), with respect to Section 3.06
of
the Agreement, in conjunction with the servicing of consumer
revolving credit card receivables owned by the Household Credit
Card
Master Trust I. This agreed-upon procedure was performed in
accordance with standards established by the American Institute
of
Certified Public Accountants. The sufficiency of the procedure
is
solely the responsibility of the Specified Users of the report.
Consequently, we make no representation regarding the sufficiency
of
the procedure described below either for the purpose for which
this
report has been requested or for any other purpose.
The procedure and associated findings are as follows:
From the Monthly Servicer's Certificates prepared by the
Servicer between January, 1998 and December, 1998, we selected
the
following months and performed the following procedure:
We have compared the mathematical calculation of each
amount
set forth in the Monthly Servicer's Certificates to the
Servicer's
accounting records for the months of May, 1998, and July 1998,
for
Series 1995-1, Series 1996-A, and for the month of July, 1998,
for
Series 1996-B and found them to be in agreement. Our
comparisons
were based on records provided to us by the Servicer and the
methodology set forth in the Agreement.
With respect to the procedure performed in item B. above, we were
not
engaged to, and did not, perform an audit, the objective of which
would
be the expression of an opinion on the Monthly Servicer's
Certificates
described above. Accordingly, we do not express such an opinion.
Had
we been engaged to perform additional procedures, other matters
might
have come to our attention that would have been reported to you.
This report is intended solely for the information and use of the
Specified Users and should not be used for any other purpose.
ARTHUR ANDERSEN LLP
Chicago, Illinois
March 24, 1999
