<PAGE> 1
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: September 14, 1999
HOUSEHOLD CONSUMER LOAN TRUST 1996-1
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(Exact name of registrant as specified in its charter)
HOUSEHOLD FINANCE CORPORATION
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(Administrator of the Trust)
(Exact name as specified in Administrator's charter)
Delaware 0-21979 88-0367746
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(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
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(Address of principal executive offices of (Zip Code)
Administrator)
Administrator's telephone number, including area code 847/564-5000
------------
Exhibit Index appears on page 4
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Item 5. OTHER EVENTS.
As provided for in Section 4.06 of the Pooling and Servicing
Agreement (the "Pooling Agreement") for Household Consumer Loan
Deposit Trust I (the "Trust"), as of March 15, 1999, the Pooling
Agreement was amended to create two pools of assets within the
Trust. All Receivables that were assigned to the Trust prior to
the date of the amendment are contained in Pool 1. Those
Receivables consist of revolving consumer loans. Receivables
assigned to the Trust after the amendment will be designated as
assets in Pool 1 or Pool 2. It is expected that Pool 2 will
consist of both revolving and closed-end loans.
The Pooling Agreement was also amended to assign each existing
Series, and all Series issued in the future to a Group. All Series
outstanding as of the date of the amendment (Series 1995-1, 1996-1,
1996-2, 1997-1, 1997-2, 1997-A, 1996-B and 1999-A) were assigned to
Group 1. Series issued by the Trust after the amendment will be
assigned to Group 1 or Group 2. Prior to the date of this report,
Series 1999-A2, 1999-B2 and 1999-C2 were issued and assigned to
Group 2.
Collections on Receivables in Pool 1 will be allocated to make
payments of principal and interest on each Series in Group 1, while
collections on Receivables in Pool 2 will be allocated to make
payments due on Series in Group 2. However, the amendment to the
Pooling Agreement also provides that excess finance charges in both
Pools will be shared among all Series, whether in Group 1 or Group
2. Excess finance charges from Group 2 will be available to
reimburse investors in Series 1995-1, 1996-1, 1996-2, 1997-1 and
1997-2 for Series Participation Interest Charge-Offs at the time
such Series terminates.
These amendments to the Pooling Agreement did not affect the
nature or type of assets supporting any existing Series and, for
Series 1995-1, 1996-1, 1996-2, 1997-1 and 1997-2, will not delay an
amortization event for any of such Series. In addition, the
ratings assigned to the Series 1995-1, 1996-1, 1996-2, 1997-1 and
1997-2 certificates have not been impacted as a result of this
amendment.
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Item 7. FINANCIAL STATEMENTS AND EXHIBITS
(c) Exhibits
--------
99 Statement to Series 1996-1 Participants with respect to the
distribution on September 14, 1999 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 September 15,
1999 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 September
15, 1999 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: September 21, 1999
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EXHIBIT INDEX
Exhibit
Number Exhibit Page
- ------- ------- ----
5
99
Statement to Series 1996-1 Participants with respect to the
distribution on September 14, 1999 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 September 15, 1999 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 September 15, 1999 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
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<TABLE>
<S> <C>
Household Consumer Loan Trust, Series 1996-1
Deposit Trust Calculations
Previous Due Period Ending Jul 31, 1999
Current Due Period Ending Aug 31, 1999
Prior Distribution Date Aug 13, 1999
Distribution Date Sep 14, 1999
Beginning Trust Principal Receivables 4,029,388,105.37
Average Principal Receivables 4,233,765,515.08
FC&A Collections (Includes Recoveries) 69,405,139.50
Principal Collections 163,046,986.46
Additional Balances 65,667,445.08
Net Principal Collections 97,379,541.38
Defaulted Amount 31,476,134.98
Miscellaneous Payments 0.00
Principal Recoveries 1,790,947.00
Beginning Participation Invested Amount 344,795,001.37
Beginning Participation Unpaid Principal 344,795,001.37
Balance
Ending Participation Invested Amount 334,301,082.20
Ending Participation Unpaid Principal Balance 334,301,082.20
Accelerated Amortization Date Feb 28, 2001
Is it the Accelerated Amortization Period? 0
0=No
OC Balance as % of Ending Participation 9.521%
Invested Amount (3 month average)
Is it Early Amortization? (No, if 3 month OC 0
Average >or=4.75%)
Investor Finance Charges and Administrative
Collections
Numerator for Floating Allocation 344,795,001.37
Numerator for Fixed Allocation 353,470,026.12
Denominator - Max(Sum of Numerators, Principal 4,233,765,515.08
Receivables)
Applicable Allocation Percentage 8.1439%
Investor FC&A Collections 5,652,307.64
Series Participation Interest Default Amount
Numerator for Floating Allocation 344,795,001.37
Denominator - Max(Sum of Numerators, Principal 4,233,765,515.08
Receivables)
Floating Allocation Percentage 8.1439%
Series Participation Interest Default Amount 2,563,395.15
Principal Allocation Components
Numerator for Floating Allocation 344,795,001.37
Numerator for Fixed Allocation 353,470,026.12
Denominator - Max(Sum of Numerators, Principal 4,233,765,515.08
Receivables)
Series Participation Interest Monthly Interest
(a) Series Participation Interest Pass Through 6.5000%
Rate, [Max(b,c)]
(b) Prime Rate minus 1.50% 6.5000%
(c) Rate Sufficient to Cover Interest, Yield 5.0404%
and Accelerated Principal Pmt Amount
(d) Series Participation Interest Unpaid 344,795,001.37
Principal Balance
(e) Actual days in the Interest Period 32
Series Participation Monthly Interest, [a*d*e] 1,992,148.90
Series Participation Interest Interest 0.00
Shortfall
Previous Series Participation Interest Interest 0.00
Shortfall
Additional Interest 0.00
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Series Participation Interest Monthly Principal
Available Investor Principal Collections, 10,493,919.17
[a+m+n]
(a) Investor Principal Collections, [Max(b,h) 7,930,524.02
or e]
(b) prior to Accelerated Amort. Date or not 7,930,524.02
Early Amort. Period, [c*d]
(c) Floating Allocation Percentage 8.1439%
(d) Net Principal Collections 97,379,541.38
(e) after Accelerated Amort Date or Early Amort 13,612,521.14
Period, [f*g]
(f) Fixed Allocation Percentage 8.3488%
(g) Collections of Principal
163,046,986.46
(h) Minimum Principal Amount, [Min(i,l)] 3,642,914.87
(i) Floating Allocation Percentage of 13,278,436.35
Principal Collections
(j) 1.8% of the Series Participation Interest 6,206,310.02
Invested Amount
(k) Series Participation Interest Net Default 2,563,395.15
Payment Amount
(l) the excess of (j) over (k) 3,642,914.87
(m) Series Participation Interest Net Default 2,563,395.15
Payment Amount
(n) Optional Repurchase Amount (principal only) 0.00
at Sec. 9
Application of Investor Finance Charges and
Admin Collections
Investor Finance Charges and Admin. Collections 5,652,307.64
[Sec. 4.11(a)]
Series Servicing Fee paid if HFC is not the 0.00
Servicer [Sec. 4.11(a)(i)]
plus any unpaid Series Servicing Fee of other 0.00
than HFC
Series Participation Interest Monthly Interest 1,992,148.90
[Sec. 4.11(a)(ii)]
Series Participation Interest Interest Shorfall 0.00
[Sec. 4.11(a)(ii)]
Additional Interest [Sec. 4.11(a)(ii)] 0.00
Series Participation Interest Default Amount 2,563,395.15
[Sec. 4.11(a)(iii)]
Reimbursed Series Participation Interest Charge- 0.00
Offs [Sec. 4.11(a)(iv)]
Servicing Fee Paid [Sec. 4.11(a)(v)] 574,658.34
Excess [Sec. 4.11(a)(vi)] 522,105.25
Series Participation Investor Charge Off [Sec. 0.00
4.12(a)]
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</TABLE>
<TABLE>
<CAPTION>
Series 1996-1
Owner Trust
Calculations
Due Period Ending Aug 31,
1999
Payment Date Sep 15,
1999
Calculation of
Interest Expense
Index (LIBOR) 5.268750%
Accrual end date, Sep 15,
accrual beginning 1999
date and days in
Interest Period
<S> <C> <C> <C> <C>
Class A Class B Certificate Overcoll
s Amount
Beginning Unpaid 179,219,761 120,678,250 12,067,825 32,829,165
Principal Balance
Previously unpaid 0.00 0.00 0.00
interest/yield
Spread to index 0.22% 0.60% 1.00%
Rate (capped at 5.488750% 5.868750% 6.268750%
13%, 15%, 16%)
Interest/Yield 819,744 590,192 63,042
Payable on the
Principal Balance
Interest on 0 0 0
previously unpaid
interest/yield
Interest/Yield 819,744 590,192 63,042
Due
Interest/Yield 819,744 590,192 63,042
Paid
Summary
Beginning 179,219,761 120,678,250 12,067,825 32,829,165
Security Balance
Beginning 179,219,761 120,678,250 12,067,825
Adjusted Balance
Principal Paid 5,455,031 3,672,872 367,287 1,070,562
Ending Security 173,764,730 117,005,379 11,700,538 31,830,435
Balance
Ending Adjusted 173,764,730 117,005,379 11,700,538
Balance
Ending 3.5000%
Certificate
Balance as %
Participation
Interest Invested
Amount
Targeted Balance
173,836,563 117,005,379 11,700,538
Minimum Adjusted
Balance 49,000,000 4,900,000 13,300,000
Certificate
Minimum Balance 10,130,660
Ending OC Amount
as Holdback 31,830,435
Amount
Ending OC Amount 0.00
as Accelerated
Prin Pmts
Beginning Net 0.00 0.00 0.00 0.00
Charge offs
Reversals 0.00 0.00 0.00 0.00
Charge offs 0.00 0.00 0.00 0.00
Ending Net Charge 0.00 0.00 0.00 0.00
Offs
Interest/Yield $1.2840597 $4.3318553 $2.4765637
Paid per $1000
Principal Paid $8.5448475 $26.9579171 $14.4286771
per $1000
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Series 1996-1 Owner Trust Calculations
Due Period August 1999
Payment Date Sep 15, 1999
Optimum Monthly Principal [a+b+c]
(a) Available Investor Principal Collections 10,493,919.17
(b) Series Participation Interest Charge Offs 0.00
(c) Lesser of Excess Interest and Carryover 0.00
Charge offs
Accelerated Principal Payment 71,832.29
Series Participation Interest Monthly Interest 1,992,148.90
Allocation of Optimum Monthly Principal and
Series Part. Interest Monthly Interest
Interest and Yield
Pay Class A Interest Distribution- Sec. 819,743.72
3.05(a)(i)(a)
Pay Class B Interest Distribution- Sec. 590,192.07
3.05(a)(i)(b)
Pay Certificates the Certificate Yield- Sec. 63,041.82
3.05(a)(i)(c)
Principal up to Optimum Monthly Principal
Balance
Pay Class A to Targeted Principal Balance- 5,383,198.38
Sec. 3.05(a)(ii)(a)
Pay Class B to Targeted Principal Balance 3,672,871.71
subject to Min Adj Bal- Sec. 3.05(a)(ii)(b)
Pay Certificate Yield if not paid pursuant to 0.00
Sec. 3.05 (a)(i)(c)
Principal up to Optimal Monthly Principal
Pay Certificate to Targeted Principal Balance 367,287.17
subject to Min Adj Bal- Sec. 3.05(a)(iii)
Pay OC Remaining Optimal Monthly Prin Amt 1,070,561.91
subject to OC Min Bal- Sec. 3.05(a)(iv)
Principal up to Accelerated Principal Payment
Amout
Pay Class A to Targeted Principal Balance 0.00
subject to Min Adj Bal- Sec. 3.05(a)(v)(a)
Pay Class B to Targeted Principal Balance 0.00
subject to Min Adj Bal- Sec. 3.05(a)(v)(b)
Pay Class A to zero- Sec. 3.05(a)(v)(c) 71,832.29
Pay Class B to zero- Sec. 3.05(a)(v)(d) 0.00
Principal up to Optimal Monthly Principal
Pay Class A to zero- Sec. 3.05(a)(vi)(a) 0.00
Pay Class B to zero- Sec. 3.05(a)(vi)(b) 0.00
Pay Certificates up to Certificate Minimum 0.00
Balance or zero- Sec. 3.05(a)(vi)(c)
Pay HCLC Optimum Monthly Principal provided 0.00
OC >0- Sec. 3.05(a)(vi)(d)
Remaining Amounts to Holder of Designated 447,339.00
Certificate - Sec. 3.05(a)(vii)
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<PAGE> 5
Allocations of Distributions to
Overcollateralization Amount
Available Distributions
Pay OC Remaining Optimal Monthly Prin Amt 1,070,561.91
subject to OC Min Bal- Sec. 3.05(a)(iv)
Pay HCLC Optimum Monthly Principal 0.00
provided OC >0- Sec. 3.05(a)(vi)
To Designated Certificate Holder up to total 71,832.29
Accelerated Principal Payments
To Designated Certificate Holder up to Holdback 998,729.62
Amount
To HCLC any remaining amounts 0.00
Principal paid to the Designated Certificate 3,684.51
</TABLE>
