FORM 8-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report: November 14, 1997
HOUSEHOLD CONSUMER LOAN TRUST 1996-1
------------------------------------
(Exact name of registrant as specified in its charter)
HOUSEHOLD FINANCE CORPORATION
-----------------------------
(Administrator of the Trust)
(Exact name as specified in Administrator's charter)
Delaware 0-21979 88-0367746
- ------------------------------------------------------------------
(State or other juris- (Commission File Numbers) (IRS Employer
diction of incorpora- Identification
tion of Administrator) Number of
Registrant)
2700 Sanders Road, Prospect Heights, Illinois 60070
- ------------------------------------------------------------------
(Address of principal executive offices of (Zip Code)
Administrator)
Administrator's telephone number, including area code 847/564-5000
------------
Exhibit Index appears on page 3
<PAGE>
Item 7. FINANCIAL STATEMENTS AND EXHIBITS
(c) Exhibits
--------
99 Statement to Series 1996-1 Participants with respect to the
distribution on November 14, 1997 as provided for under
Article V of the Pooling and Servicing Agreement dated as of
September 1, 1995 among Household Finance Corporation, as
Servicer and The Chase Manhattan Bank, N.A., as Deposit
Trustee and Section 5 of the Series 1996-1 Supplement to the
Pooling and Servicing Agreement, (b) Noteholders with respect
to the Payment Date on November 17, 1997 as provided for under
Section 3.23 of the Indenture dated as of March 1, 1996
between Household Consumer Loan Trust 1996-1 and The Bank of
New York, as Indenture Trustee, and (c) Certificateholders
with respect to the Payment Date on November 17, 1997 as
provided for under Section 5.04 of the Trust Agreement dated
as of March 1, 1996 between Household Consumer Loan
Corporation and The Chase Manhattan Bank (USA), as Owner
Trustee.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of
1934, the Administrator has duly caused this report to be signed on
behalf of the undersigned hereunto duly authorized.
HOUSEHOLD FINANCE CORPORATION,
as Administrator of and on behalf of the
HOUSEHOLD CONSUMER LOAN TRUST 1996-1
----------------------------------------
(Registrant)
By: /s/ J. W. Blenke
-----------------------------------
J. W. Blenke
Authorized Representative
Dated: November 24, 1997
-----------------------
- 2 -
<PAGE>
EXHIBIT INDEX
Exhibit
Number Exhibit Page
- ------- ------- ----
4
99 Statement to Series 1996-1 Participants with respect to the
distribution on November 14, 1997 as provided for under
Article V of the Pooling and Servicing Agreement dated as
of
September 1, 1995 among Household Finance Corporation, as
Servicer and The Chase Manhattan Bank, N.A., as Deposit
Trustee and Section 5 of the Series 1996-1 Supplement to the
Pooling and Servicing Agreement, (b) Noteholders with respect
to the Payment Date on November 17, 1997 as provided for under
Section 3.23 of the Indenture dated as of March 1, 1996
between Household Consumer Loan Trust 1996-1 and The Bank of
New York, as Indenture Trustee, and (c) Certificateholders
with respect to the Payment Date on November 17, 1997 as
provided for under Section 5.04 of the Trust Agreement dated
as of March 1, 1996 between Household Consumer Loan
Corporation and The Chase Manhattan Bank (USA), as Owner
Trustee.
U:\WP\HFS088\8K\HCLT96-1.8K
-3-
Household Consumer Loan Deposit Trust
Collateral Report
Number of Due Periods Since Inception 25
Due Period 01-Oct-97
Distribution Date 14-Nov-97
Payment Date 17-Nov-97
*** Trust Portfolio Summary ***
Annualized Cash Yield 19.68%
Annualized Gross Losses -7.76%
Annualized Portfolio Yield 11.92%
Contractual Delinquency Status of Credit Lines: (Principal/Principal)
30 - 59 days ($) 200176865.42
30 - 59 days (%) 4.94%
60 - 89 days ($) 86162546.82
60 - 89 days (%) 2.13%
90 - 119 days ($) 52821888.63
90 - 119 days (%) 1.30%
120 - 149 days ($) 43743063.48
120 - 149 days (%) 1.08%
150 - 179 days ($) 36312463.48
150 - 179 days (%) 0.90%
180 - 209 days ($) 33985045.43
180 - 209 days (%) 0.84%
210 - 239 days ($) 30497017.47
210 - 239 days (%) 0.75%
240 - 269 days ($) 28575648.87
240 - 269 days (%) 0.71%
270 - 299 days ($) 27737789.73
270 - 299 days (%) 0.68%
300+ days ($) 5478424.73
300+ days (%) 0.14%
Additional Balances on Existing Credit Lines (draws-prin only) 71,031,265.00
Principal Collections 115,018,715.54
Defaulted Receivables 26,707,440.43
Finance Charge & Administrative Collections 65,877,729.84
Recoveries 1,835,461.00
Average Principal Balance 4,127,807,129.41
Personal Homeowner Lines as % of Total Principal 29.70%<PAGE>
Household Finance Corporation
Household Consumer Loan Corporation
Household Consumer Loan Trust Series 1996-1
No. of PMTs Since Issuance: 20
Distribution Date: 14-Nov-97
Payment Date: 17-Nov-97
Collection Period Beginning: 01-Oct-97
Collection Period Ending: 31-Oct-97
Note and Certificate Accrual Beginning: 15-Oct-97
Note and Certificate Accrual Ending: 17-Nov-97
PAYMENT CALCULATIONS:
OC Balance as % of Beginning Participation Invested Amount 7.23%
OC Balance as % of Ending Participation Invested Amount 7.38%
OC Balance as % of Ending Participation Invested Amount (3 month avg 7.08%
Does Early Amortization Start Based on OC/Part. Invstd. Amt. Test ---
Is the MAP Over? 0.00
Is this the Early Amortization Period? 0.00
Interest Allocation Percentage Calculation:
Numerator 591,262,282.35
Denominator - Component (x) - Aggregate Receivables &
Partc. Interest 4,127,807,129.41
Denominator - Component (y) - Aggregate Numerators 3,869,933,285.35
Applicable Interest Allocation Percentage 14.32%
Principal Allocation Percentage Calculation:
Numerator 591,262,282.35
Denominator - Component (x) - Aggregate Receivables
& Partc. Interest 4,127,807,129.41
Denominator - Component (y) - Aggregate Numerators 3,873,422,059.06
Applicable Principal Allocation Percentage 14.32%
Default Allocation Percentage Calculation:
Numerator 591,262,282.35
Denominator - Component (x) - Aggregate Receivables
& Partc. Interest 4,127,807,129.41
Denominator - Component (y) - Aggregate Numerators 3,869,933,285.35
Default Allocation Percentage (Floating Allocation Percentage) 14.32%
Minimum Principal Amount Calculation:
1.8% of Participation Invested Amount 10,642,721.08
Series Participation Interest Default Amount (Sec. 4.11 (a)(iii)) 3,825,542.64
Excess of (i) 1.8% of Part. Inv. Amt. over (ii)
Series Part. Interest 6,817,178.44
Minimum Principal Amount 6,817,178.44
Investor Principal Collections 6,817,178.44
Investor Finance Charge and Admin. Collections (4.11a) 9,699,158.54
Investor Allocated Defaulted Amounts 3,825,542.64
DEPOSIT TRUST CALCULATIONS
Beginning Participation Unpaid Principal Balance 591,262,282.35
Beginning Participation Invested Amount 591,262,282.35
Ending Participation Unpaid Principal Balance 580,619,561.27
Ending Participation Invested Amount 580,619,561.27
Beginning Participation Unpaid Principal
Balance x (PRIME-1.50%) 3,563,997.65
Note Interest and Certificate Yield Amounts
Due Pursuant to Sec. 3.05 3,004,624.94
Participation Invested Amount x 25bps per annum 123,179.64
Participation Interest Distribution Amount 3,563,997.65
Application of Investor Finance Charges & Administrative Collections:
Investor Finance Charge and Admin. Collections (4.11a) 9,699,158.54
Servicing Fee if HFC is not the Servicer (Sec. 4.11 (a)(i) 0.00
Series Participation Interest Monthly
Interest (Sec. 4.11 (a)(ii)) 3,563,997.65
Series Participation Interest Default Amount (Sec. 4.11 (a)(iii)) 3,825,542.64
Reimbursed Series Particpation Interest
Charge-Offs (Sec. 4.11 (a)(i 0.00
Servicing Fee if HFC is the Servicer (Sec. 4.11 (a)(v)) 985,437.14
Excess (Sec. 4.11 (a)(vi)) 1,324,181.11
Reconciliation Check 0.00
Series Participation Interest Monthly Principal 10,642,721.08
Beginning Unreimbursed Participation Interest Charge-Offs 0.00
Series Participation Interest Charge-Offs (Sec. 4.12 (a)) 0.00
Reimbursed Series Particpation Interest Charge-Offs (Sec. 4.11 (a)(i 0.00
Ending Unreimbursed Participation Interest Charge-Offs 0.00
Available Investor Principal Collections 10,642,721.08
Participation Interest Distribution Amount 3,563,997.65
Series Participation Interest Charge-Offs 0.00
OWNER TRUST CALCULATIONS
Note Interest and Certificate Yield Amounts
Due Pursuant to Sec. 3.05 3,004,624.94
Excess Interest 559,372.71
Beginning Net Charge-Offs 0.00
Reversals 0.00
+Available Investor Principal Collections 10,642,721.08
+Series Participation Interest Charge Offs 0.00
+ Lesser of Excess Interest and Carryover Charge Offs 0.00
Optimum Monthly Principal 10,642,721.08
Are the Notes Retired ? 0.00
Accelerated Principal Payment 123,179.64
Beginning Class A Security Balance 386,827,719.17
Beginning Class B Security Balance 136,244,640.00
Beginning Certificate Security Balance 25,455,360.00
Beginning Overcollateralization Amount plus APP 42,857,742.83
Beginning Class A Adjusted Balance 386,827,719.17
Beginning Class B Adjusted Balance 136,244,640.00
Beginning Certficate Adjusted Balance 25,455,360.00
Beginning Overcollateralization Amount plus APP 42,857,742.83
Class A Balance After Payment pursuant to clause (iv) 376,184,998.09
Class B Balance After Payment pursuant to clause (v) 136,244,640.00
Certificate Balance After Payment pursuant to clause (vi) 25,455,360.00
Class B Minimum Adjusted Principal Balance 49,000,000.00
Certificate Minimum Adjusted Principal Balance 4,900,000.00
Minimum Overcollateralization Amount 13,300,000.00
Certificate Minimum Balance Target 17,595,095.18
Scheduled Certificate Payment to
Certificate Minimum Balance Target 7,860,264.82
Class A Targeted Balance 301,922,171.86
Class B Targeted Balance 128,954,020.22
Certificate Targeted Balance 13,031,064.87
Class A: Payment Required to get to Target 84,905,547.30
Class B: Payment Required to get to Target or
Minimum Adjusted Balan 7,290,619.78
Certificate: Payment Required to get to Target or
Minimum Adjusted B 12,424,295.13
OC: Payment to get to Minimum Overcollateralization Amount 29,557,742.83
Section 3.05 Payment of Principal and Interest; Defaulted Interest 0.00
Pay Certificate Yield in step (i) (1= Yes) 1.00
Remittances on the Participation 14,206,718.73
Interest and Yield
(i) Pay Class A Interest Distribution (Sec. 3.05 (i)(a)) 2,072,590.68
(ii) Pay Class B Interest Distribution (Sec. 3.05 (i)(b)) 777,445.98
(iii) Pay Certificates the Certificate Yield (Sec. 3.05 (i)(c)) 154,588.28
Principal up to Optimum Monthly Principal
(iv) Pay Class A to Targeted
Principal Balance (Sec. 3.05 (ii)(a)) 10,642,721.08
(v) Pay Class B to Targeted Principal Balance (Sec. 3.05 (ii)(b)) 0.00
ONLY Pay Certificate Interest if not paid pursuant to (Sec. 3.05 (i)( 0.00
Principal up to Optimal Monthly Principal
(vi) Pay Certificate to Targeted Principal Balance (Sec. 3.05 (iii) 0.00
(vii) Pay OC Remaining Optimal Monthly Principal Amount (Sec. 3.05 ( 0.00
Principal up to the Accelerated Principal Payment Amount
(viii) (a ) Pay Class A to Targeted
Principal Balance (Sec. 3.05 (v 123,179.64
(viii) (b ) Pay Class B to Targeted Principal Balance (Sec. 3.05 (v 0.00
(viii) (c ) Pay Class A to zero (Sec. 3.05 (v)(c)) 0.00
(viii) (d ) Pay Class B to zero (Sec. 3.05 (v)(d)) 0.00
Principal up to Optimal Monthly Principal
(xi) Pay Class A to zero (Sec. 3.05 (vi)(a)) 0.00
(xii) Pay Class B to zero (Sec. 3.05 (vi)(b)) 0.00
(xiii) Pay Certificates, st.Certificate Min. Bal. Target (Sec. 3.05 ( 0.00
(ix) Pay OC Remaining Optimum Monthly Principal (Sec. 3.05 (vi)(d)) 0.00
Remaining Amounts to Issuer (Sec. 3.05 (vii)) 436,193.07
Total Reconciliation Check (shou 0.00
Accelerated Principal Reconciliation (should equal $ 0.00
Optimum Monthly Principal Reconciliation (should equal charge- 0.00
BOND SUMMARY:
Beginning Class A Note Security Balance $386,827,719.17
Beginning Class B Note Security Balance $136,244,640.00
Beginning Certificate Security Balance $25,455,360.00
Beginning Overcollateralization Amount $42,734,563.19
Beginning Class A Adjusted Balance $386,827,719.17
Beginning Class B Adjusted Balance $136,244,640.00
Beginning Certficate Adjusted Balance $25,455,360.00
Beginning Overcollateralization Amount $42,734,563.19
Ending Class A Note Security Balance $376,061,818.44
Ending Class B Note Security Balance $136,244,640.00
Ending Certificate Security Balance $25,455,360.00
Ending Overcollateralization Amount $42,857,742.83
Ending Class A Adjusted Balance $376,061,818.44
Ending Class B Adjusted Balance $136,244,640.00
Ending Certficate Adjusted Balance $25,455,360.00
Ending Overcollateralization Amount $42,857,742.83
Class A Note Rate Capped at 13% 5.845000%
Class B Note Rate Capped at 15% 6.225000%
Certificate Rate Capped at 16% 6.625000%
Class A Interest Due $2,072,590.68
Class B Interest Due $777,445.98
Certificate Yield Due $154,588.28
Class A Interest Paid $2,072,590.68
Class B Interest Paid $777,445.98
Certificate Yield Paid $154,588.28
Class A Unpaid Interest $0.00
Class B Unpaid Interest $0.00
Certificate Unpaid Yield $0.00
Class A Principal Paid $10,765,900.72
Class B Principal Paid $0.00
Certificate Principal Paid $0.00
OC Principal Paid $0.00
Beginning Class A Net Charge-Off $0.00
Beginning Class B Net Charge-Off $0.00
Beginning Certificate Net Charge-Off $0.00
Beginning OC Net Charge-Off $0.00
Reversals Allocated to Class A $0.00
Reversals Allocated to Class B $0.00
Reversals Allocated to Certificates $0.00
Reversals Allocated to OC plus Acclerated Principal Payments $123,179.64
Total Charge-Offs: $0.00
Charge-Offs Allocated to Class A $0.00
Charge-Offs Allocated to Class B $0.00
Charge-Offs Allocated to Certificates $0.00
Charge-Offs Allocated to OC $0.00
Ending Class A Net Charge-Off $0.00
Ending Class B Net Charge-Off $0.00
Ending Certificate Net Charge-Off $0.00
Ending OC Net Charge-Off $0.00
Bond Balance Reconciliation (should equal $0.00) $0.00
Certificate Balance/Participation Invested Amount (Beginning of Month 4.3053%
Designated Certificate / Certificate Security (Balance Beginning of M 1.003168%
Designated Certificate - Beginning of Month $255,360.00
Principal Payments in Respect of Designated Certificate (Sec. 3.05 ( $0.00
Designated Certificate - End of Month $255,360.00
Interest Payments in Respect of Designated Certificate (Sec. 3.05 (i) $1,550.78
Designated Certificateholder Accelerated
Principal Payments - Beginni $2,834,563.19
Accelerated Principal Payment (Sec. 3.05 (v)) $123,179.64
Payments to Holder of Designated Certificate in respect to Acc. Prin. $0.00
Designated Certificateholder Accelerated
Principal Payments - Ending $2,957,742.83
Designated Certificateholder Holdback
Amount (Beginning of Month) $39,900,000.00
Payments to Designated Certificates in Reduction of Holdback Amount ( $0.00
Designated Certificateholder Holdback
Amount (End of Month) $39,900,000.00
Remaining Payments to Designated Certificates (Sec. 3.05 paragraph fo $0.00
Remaining Amounts to Issuer (Sec. 3.05 (vii)) $436,193.07
MONTHLY SECURITY REPORT
Ending Pool Principal Balance $4,053,219,590.76
Series 1996-1 Participation Invested Amount $580,619,561.27
Seller Amount $1,258,633,859.93
Remittances on the Participation $14,206,718.73
Optimum Monthly Principal $10,642,721.08
Accelerated Principal Payment $123,179.64
Beginning Class A Note Security Balance $386,827,719.17
Beginning Class B Note Security Balance $136,244,640.00
Beginning Certificate Security Balance $25,455,360.00
Beginning Overcollateralization Amount $42,734,563.19
Beginning Class A Adjusted Balance $386,827,719.17
Beginning Class B Adjusted Balance $136,244,640.00
Beginning Certficate Adjusted Balance $25,455,360.00
Beginning Overcollateralization Amount $42,734,563.19
Ending Class A Note Security Balance $376,061,818.44
Ending Class B Note Security Balance $136,244,640.00
Ending Certificate Security Balance $25,455,360.00
Ending Overcollateralization Amount $42,857,742.83
Ending Class A Adjusted Balance $376,061,818.44
Ending Class B Adjusted Balance $136,244,640.00
Ending Certificate Adjusted Balance $25,455,360.00
Ending Overcollateralization Amount $42,857,742.83
Class A Note Rate Capped at 13% 5.845000%
Class B Note Rate Capped at 15% 6.225000%
Certificate Rate Capped at 16% 6.625000%
Class A Interest Due $2,072,590.68
Class B Interest Due $777,445.98
Certificate Yield Due $154,588.28
Class A Interest Paid $2,072,590.68
Class B Interest Paid $777,445.98
Certificate Yield Paid $154,588.28
Class A Unpaid Interest $0.00
Class B Unpaid Interest $0.00
Cetificate Unpaid Yield $0.00
Class A Principal Paid $10,765,900.72
Class B Principal Paid $0.00
Certificate Principal Paid $0.00
OC Principal Paid $0.00
Beginning Class A Net Charge-Off $0.00
Beginning Class B Net Charge-Off $0.00
Beginning Certificate Net Charge-Off $0.00
Beginning OC Net Charge-Off $0.00
Reversals Allocated to Class A $0.00
Reversals Allocated to Class B $0.00
Reversals Allocated to Certificates $0.00
Reversals Allocated to OC plus Acclerated Principal Payments $123,179.64
Total Charge-Offs: $0.00
Charge-Offs Allocated to Class A $0.00
Charge-Offs Allocated to Class B $0.00
Charge-Offs Allocated to Certificates $0.00
Charge-Offs Allocated to OC $0.00
Ending Class A Net Charge-Off $0.00
Ending Class B Net Charge-Off $0.00
Ending Certificate Net Charge-Off $0.00
Ending OC Net Charge-Off $0.00
Interest paid per $1,000 Class A 3.246539
Principal paid per $1,000 Class A 16.863880
Interest paid per $1,000 Class B 5.706250
Principal paid per $1,000 Class B 0.000000
Yield Paid per $1,000 Certificate 6.072917
Principal Paid per $1,000 Certificate 0.000000<PAGE>
Bloomberg Summary
HOUSEHOLD CONSUMER LOAN TRUST 1996-1
Due Period Oct-97
Monthly Payment Rate (including charge offs) 3.43%
Monthly Draw Rate 1.72%
Monthly Net Payment Rate 1.71%
Actual Payment Rate 1.80%
Annualized Cash Yield 19.68%
Annualized Gross Losses 7.76%
Annualized Portfolio Yield 11.92%
Weighted Coupon 5.98%
Excess Servicing 5.95%
Ending Overcollateralization Percentage (3 mo avg) 7.23%
Trigger Level 4.75%
Excess Overcollateralization 2.48%
Delinquencies: (Principal/Principal)
30-59 days (Del Stat 1) 4.94%
60-89 days (Del Stat 2) 2.13%
90+ days (Del Stat 3+) 6.39%
Total Participation Balance (ending) 580,619,561.27
