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 13, 1998
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 13, 1998 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 October 16,
1998 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 October 16,
1998 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 25, 1998
-----------------------
- 2 -
<PAGE>
EXHIBIT INDEX
Exhibit
Number Exhibit Page
- ------- ------- ----
4
99
Statement to Series 1996-1 Participants with respect to the
distribution on November 13, 1998 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 October 16, 1998 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 October 16, 1998 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 37
Due Period 01-Oct-98
Distribution Date 13-Nov-98
Payment Date 16-Nov-98
*** Trust Portfolio Summary ***
Annualized Cash Yield 18.61%
Annualized Gross Losses -10.19%
Annualized Portfolio Yield 8.42%
Contractual Delinquency Status of Credit
Lines: (Principal / Principal)
30 - 59 days ($) 205519239.4
30 - 59 days (%) 5.45%
60 - 89 days ($) 72031733.44
60 - 89 days (%) 1.91%
90 - 119 days ($) 52330205.5
90 - 119 days (%) 1.39%
120 - 149 days ($) 43189704.81
120 - 149 days (%) 1.14%
150 - 179 days ($) 38032032.63
150 - 179 days (%) 1.01%
180 - 209 days ($) 36091527.85
180 - 209 days (%) 0.96%
210 - 239 days ($) 35817481.69
210 - 239 days (%) 0.95%
240 - 269 days ($) 34545885.94
240 - 269 days (%) 0.92%
270 - 299 days ($) 33175931.84
270 - 299 days (%) 0.88%
300+ days ($) 6455551.13
300+ days (%) 0.17%
Additional Balances on Existing Credit Lines 49,133,042.35
(draws - principal only)
Principal Collections 115,990,520.35
Defaulted Receivables 32,895,486.07
Finance Charge & Administrative Collections 58,618,470.04
Recoveries 1,440,756.00
Average Principal Balance 3,873,735,838.45
Personal Homeowner Lines as % of Total 28.90%
Principal
Household Finance Corporation
Household Consumer Loan Corporation
Household Consumer Loan Trust Series 1996-1
No. of PMTs Since Issuance: 32
Distribution Date: 13-Nov-98
Payment Date: 16-Nov-98
Collection Period Beginning: 01-Oct-98
Collection Period Ending: 31-Oct-98
Note and Certificate Accrual Beginning: 15-Oct-98
Note and Certificate Accrual Ending: 16-Nov-98
PAYMENT CALCULATIONS:
OC Balance as % of Beginning Participation 9.98%
Invested Amount
OC Balance as % of Ending Participation 10.26%
Invested Amount
OC Balance as % of Ending Participation 9.69%
Invested Amount (3 month average)
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 441,480,969.77
Denominator - Component (x) - Aggregate 3,873,735,838.45
Receivables & Partc. Interest
Denominator - Component (y) - Aggregate 3,814,341,919.67
Numerators
Applicable Interest Allocation Percentage 11.40%
Principal Allocation Percentage Calculation:
Numerator 441,480,969.77
Denominator - Component (x) - Aggregate 3,873,735,838.45
Receivables & Partc. Interest
Denominator - Component (y) - Aggregate 3,822,187,074.33
Numerators
Applicable Principal Allocation Percentage 11.40%
Default Allocation Percentage Calculation:
Numerator 441,480,969.77
Denominator - Component (x) - Aggregate 3,873,735,838.45
Receivables & Partc. Interest
Denominator - Component (y) - Aggregate 3,814,341,919.67
Numerators
Default Allocation Percentage (Floating 11.40%
Allocation Percentage)
Minimum Principal Amount Calculation:
1.8% of Participation Invested Amount 7,946,657.46
Series Participation Interest Default Amount 3,749,024.64
(Sec. 4.11 (a)(iii))
Excess of (i) 1.8% of Part. Inv. Amt. over 4,197,632.82
(ii) Series Part. Interest Default Amount
Minimum Principal Amount 4,197,632.82
Investor Principal Collections 7,619,596.55
Investor Finance Charge and Admin. 6,844,815.05
Collections (4.11a)
Investor Allocated Defaulted Amounts 3,749,024.64
DEPOSIT TRUST CALCULATIONS
Beginning Participation Unpaid Principal 441,480,969.77
Balance
Beginning Participation Invested Amount 441,480,969.77
Ending Participation Unpaid Principal Balance 430,112,348.59
Ending Participation Invested Amount 430,112,348.59
Beginning Participation Unpaid Principal 2,483,330.45
Balance x (PRIME-1.50%)
Note Interest and Certificate Yield Amounts 2,052,103.44
Due Pursuant to Sec. 3.05 (a)(i)
Participation Invested Amount x 25bps per 91,975.20
annum
Participation Interest Distribution Amount 2,483,330.45
Application of Investor Finance Charges &
Administrative Collections:
Investor Finance Charge and Admin. 6,844,815.05
Collections (4.11a)
Servicing Fee if HFC is not the Servicer 0.00
(Sec. 4.11 (a)(i)
Series Participation Interest Monthly 2,483,330.45
Interest (Sec. 4.11 (a)(ii))
Series Participation Interest Default Amount 3,749,024.64
(Sec. 4.11 (a)(iii))
Reimbursed Series Particpation Interest 0.00
Charge-Offs (Sec. 4.11 (a)(iv))
Servicing Fee if HFC is the Servicer (Sec. 612,459.96
4.11 (a)(v))
Excess (Sec. 4.11 (a)(vi)) (0.00)
Reconciliation Check 0.00
Series Participation Interest Monthly 11,368,621.18
Principal
Beginning Unreimbursed Participation Interest 0.00
Charge-Offs
Series Participation Interest Charge-Offs 0.00
(Sec. 4.12 (a))
Reimbursed Series Particpation Interest 0.00
Charge-Offs (Sec. 4.11 (a)(iv))
Ending Unreimbursed Participation Interest 0.00
Charge-Offs
Available Investor Principal Collections 11,368,621.18
Participation Interest Distribution Amount 2,483,330.45
Series Participation Interest Charge-Offs 0.00
OWNER TRUST CALCULATIONS
Note Interest and Certificate Yield Amounts 2,052,103.44
Due Pursuant to Sec. 3.05 (a)(i)
Excess Interest 431,227.01
Beginning Net Charge-Offs 0.00
Reversals 0.00
+Available Investor Principal Collections 11,368,621.18
+Series Participation Interest Charge Offs 0.00
+ Lesser of Excess Interest and Carryover 0.00
Charge Offs
Optimum Monthly Principal 11,368,621.18
Are the Notes Retired ? 0.00
Accelerated Principal Payment 91,975.20
Beginning Class A Security Balance 235,733,144.55
Beginning Class B Security Balance 136,244,640.00
Beginning Certificate Security Balance 25,455,360.00
Beginning Overcollateralization Amount plus 44,139,800.43
APP
Beginning Class A Adjusted Balance 235,733,144.55
Beginning Class B Adjusted Balance 136,244,640.00
Beginning Certficate Adjusted Balance 25,455,360.00
Beginning Overcollateralization Amount plus 44,139,800.43
APP
Class A Balance After Payment pursuant to 224,364,523.37
clause (iv)
Class B Balance After Payment pursuant to 136,244,640.00
clause (v)
Certificate Balance After Payment pursuant to 25,455,360.00
clause (vi)
Class B Minimum Adjusted Principal Balance 49,000,000.00
Certificate Minimum Adjusted Principal 4,900,000.00
Balance
Minimum Overcollateralization Amount 13,300,000.00
Certificate Minimum Balance Target 13,034,124.61
Scheduled Certificate Payment to Certificate 12,421,235.39
Minimum Balance Target
Class A Targeted Balance 223,658,421.27
Class B Targeted Balance 149,833,219.91
Certificate Targeted Balance 28,642,512.11
Class A: Payment Required to get to Target 12,074,723.28
Class B: Payment Required to get to Target 0.00
or Minimum Adjusted Balance
Certificate: Payment Required to get to 0.00
Target or Minimum Adjusted Balance
OC: Payment to get to Minimum 30,839,800.43
Overcollateralization Amount
Section 3.05 Payment of Principal and 0.00
Interest; Defaulted Interest
Pay Certificate Yield in step (i) (1= Yes) 1.00
Remittances on the Participation 13,851,951.63
Interest and Yield
(i) Pay Class A Interest Distribution 1,179,417.97
(Sec. 3.05 (i)(a))
(ii) Pay Class B Interest Distribution 727,678.38
(Sec. 3.05 (i)(b))
(iii) Pay Certificates the Certificate 145,007.08
Yield (Sec. 3.05 (i)(c))
Principal up to Optimum Monthly Principal
(iv) Pay Class A to Targeted Principal 11,368,621.18
Balance (Sec. 3.05 (ii)(a))
(v) Pay Class B to Targeted Principal 0.00
Balance (Sec. 3.05 (ii)(b))
ONLY Pay Certificate Interest if not paid 0.00
pursuant to (Sec. 3.05 (i)(c))
Principal up to Optimal Monthly Principal
(vi) Pay Certificate to Targeted Principal 0.00
Balance (Sec. 3.05 (iii))
(vii) Pay OC Remaining Optimal Monthly 0.00
Principal Amount (Sec. 3.05 (iv)(d))
Principal up to the Accelerated Principal
Payment Amount
(viii) (a ) Pay Class A to Targeted 91,975.20
Principal Balance (Sec. 3.05 (v)(a))
(viii) (b ) Pay Class B to Targeted 0.00
Principal Balance (Sec. 3.05 (v)(b))
(viii) (c ) Pay Class A to zero (Sec. 3.05 0.00
(v)(c))
(viii) (d ) Pay Class B to zero (Sec. 3.05 0.00
(v)(d))
Principal up to Optimal Monthly Principal
(xi) Pay Class A to zero (Sec. 3.05 0.00
(vi)(a))
(xii) Pay Class B to zero (Sec. 3.05 0.00
(vi)(b))
(xiii) Pay Certificates, st.Certificate Min. 0.00
Bal. Target (Sec. 3.05 (vi)(c))
(ix) Pay OC Remaining Optimum Monthly 0.00
Principal (Sec. 3.05 (vi)(d))
Remaining Amounts to Issuer (Sec. 3.05 (vii)) 339,251.81
Total Reconciliation Check 0.00
(should equal $0.00)
Accelerated Principal Reconciliation 0.00
(should equal $0.00)
Optimum Monthly Principal Reconciliation 0.00
(should equal charge-offs)
BOND SUMMARY:
Beginning Class A Note Security Balance $235,733,144.55
Beginning Class B Note Security Balance $136,244,640.00
Beginning Certificate Security Balance $25,455,360.00
Beginning Overcollateralization Amount $44,047,825.23
Beginning Class A Adjusted Balance $235,733,144.55
Beginning Class B Adjusted Balance $136,244,640.00
Beginning Certficate Adjusted Balance $25,455,360.00
Beginning Overcollateralization Amount $44,047,825.23
Ending Class A Note Security Balance $224,272,548.17
Ending Class B Note Security Balance $136,244,640.00
Ending Certificate Security Balance $25,455,360.00
Ending Overcollateralization Amount $44,139,800.43
Ending Class A Adjusted Balance $224,272,548.17
Ending Class B Adjusted Balance $136,244,640.00
Ending Certficate Adjusted Balance $25,455,360.00
Ending Overcollateralization Amount $44,139,800.43
Class A Note Rate Capped at 13% 5.628590%
Class B Note Rate Capped at 15% 6.008590%
Certificate Rate Capped at 16% 6.408590%
Class A Interest Due $1,179,417.97
Class B Interest Due $727,678.38
Certificate Yield Due $145,007.08
Class A Interest Paid $1,179,417.97
Class B Interest Paid $727,678.38
Certificate Yield Paid $145,007.08
Class A Unpaid Interest $0.00
Class B Unpaid Interest $0.00
Certificate Unpaid Yield $0.00
Class A Principal Paid $11,460,596.38
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 $91,975.20
Principal Payments
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 5.7659%
Amount (Beginning of Month)
Designated Certificate / Certificate Security 1.003168%
(Balance Beginning of Month)
Designated Certificate - Beginning of Month $255,360.00
Principal Payments in Respect of Designated $0.00
Certificate (Sec. 3.05 (iii) & (vi)(c))
Designated Certificate - End of Month $255,360.00
Interest Payments in Respect of Designated $1,454.66
Certificate (Sec. 3.05 (i)(c))
Designated Certificateholder Accelerated $4,147,825.23
Principal Payments - Beginning Balance
Accelerated Principal Payment (Sec. 3.05 (v)) $91,975.20
Payments to Holder of Designated Certificate $0.00
in respect to Acc. Prin. (Sec. 3.05 (iv) &
(vi)(d))
Designated Certificateholder Accelerated $4,239,800.43
Principal Payments - Ending Balance
Designated Certificateholder Holdback Amount $39,900,000.00
(Beginning of Month)
Payments to Designated Certificates in $0.00
Reduction of Holdback Amount (Sec. 3.05 (iv)
& (vi)(d))
Designated Certificateholder Holdback Amount $39,900,000.00
(End of Month)
Remaining Payments to Designated Certificates $0.00
(Sec. 3.05 paragraph following (vii))
Remaining Amounts to Issuer (Sec. 3.05 (vii)) $339,251.81
Monthly Security Report $0.00
Household Consumer Loan Trust 1996-1 $0.00
Distribution Date 13-Nov-98
Payment Date: 16-Nov-98
Collection Period Beginning 01-Oct-98
Collection Period Ending: 31-Oct-98
Note and Certificate Accrual Beginning: 15-Oct-98
Note and Certificate Accrual Ending: 16-Nov-98
Ending Pool Principal Balance $3,774,205,678.59
Series 1996-1 Participation Invested Amount $430,112,348.59
Seller Amount $58,222,665.05
Remittances on the Participation $13,851,951.63
Optimum Monthly Principal $11,368,621.18
Accelerated Principal Payment $91,975.20
Beginning Class A Note Security Balance $235,733,144.55
Beginning Class B Note Security Balance $136,244,640.00
Beginning Certificate Security Balance $25,455,360.00
Beginning Overcollateralization Amount $44,047,825.23
Beginning Class A Adjusted Balance $235,733,144.55
Beginning Class B Adjusted Balance $136,244,640.00
Beginning Certficate Adjusted Balance $25,455,360.00
Beginning Overcollateralization Amount $44,047,825.23
Ending Class A Note Security Balance $224,272,548.17
Ending Class B Note Security Balance $136,244,640.00
Ending Certificate Security Balance $25,455,360.00
Ending Overcollateralization Amount $44,139,800.43
Ending Class A Adjusted Balance $224,272,548.17
Ending Class B Adjusted Balance $136,244,640.00
Ending Certificate Adjusted Balance $25,455,360.00
Ending Overcollateralization Amount $44,139,800.43
Class A Note Rate Capped at 13% 5.628590%
Class B Note Rate Capped at 15% 6.008590%
Certificate Rate Capped at 16% 6.408590%
Class A Interest Due $1,179,417.97
Class B Interest Due $727,678.38
Certificate Yield Due $145,007.08
Class A Interest Paid $1,179,417.97
Class B Interest Paid $727,678.38
Certificate Yield Paid $145,007.08
Class A Unpaid Interest $0.00
Class B Unpaid Interest $0.00
Cetificate Unpaid Yield $0.00
Class A Principal Paid $11,460,596.38
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 $91,975.20
Principal Payments
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 1.847459
Principal paid per $1,000 Class A 17.952062
Interest paid per $1,000 Class B 5.340969
Principal paid per $1,000 Class B 0.000000
Yield Paid per $1,000 Certificate 5.696524
Principal Paid per $1,000 Certificate 0.000000
0.00%
Bloomberg Summary
Household Consumer Loan Trust 1996-1
Due Period Oct-98
Monthly Payment Rate (including charge offs) 3.84%
Monthly Draw Rate 1.27%
Monthly Net Payment Rate 2.58%
Actual Payment Rate 2.58%
Annualized Cash Yield 18.61%
Annualized Gross Losses 10.19%
Annualized Portfolio Yield 8.42%
Weighted Coupon 5.81%
Excess Servicing 2.61%
Ending Overcollateralization Percentage (3 mo 9.98%
avg)
Trigger Level 4.75%
Excess Overcollateralization 5.23%
Delinquencies:
(Principal/Principal)
30-59 days (Del Stat 1) 5.45%
60-89 days (Del Stat 2) 1.91%
90+ days (Del Stat 3+) 7.41%
Total Participation Balance (ending) 430,112,348.59
