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, 1996
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. 333-6047
HOUSEHOLD CONSUMER LOAN TRUST 1996-2
(Exact name of Registrant as specified in Department
of the Treasury, Internal Revenue Service Form SS-4)
HOUSEHOLD FINANCE CORPORATION
(Administrator of the Trust)
(Exact name as specified in Administrator's charter)
DELAWARE 36-3670374
(State or other jurisdiction of (I.R.S. Employer
incorporation of Administrator) Identification 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
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 Notes held by non-affiliates
of the Administrator as of December 31, 1996 was approximately
$963.5 million.
<PAGE>
INTRODUCTORY NOTE
Household Consumer Loan Trust 1996-2 (the "Issuer") is the
issuer of Household Consumer Loan Asset-Backed Notes, Series 1996-2
(the "Notes") were issued pursuant to an indenture, dated as of
August 1, 1996 between the Issuer and The Bank of New York, as
indenture trustee. The Notes were secured by a participation
interest (the "Series 1996-2 Participation") in certain consumer
loan receivables held by Household Consumer Loan Deposit Trust I
(the "Deposit Trust"). The Deposit Trust was formed pursuant to a
Pooling and Servicing Agreement, dated as of September 1, 1995, by
and among Household Consumer Loan Corporation, as Seller (the
"Seller"), Household Finance Corporation, as servicer (the
Servicer") and The Chase Manhattan Bank, N. A., as deposit trustee
(the "Deposit Trustee").
The Issuer was formed pursuant to a Trust Agreement, dated as
of August 1, 1996 (the "Trust Agreement") between the Seller and
The Chase Manhattan Bank (USA), as owner trustee (the "Owner
Trustee"). In addition to the Notes, pursuant tot he Trust
Agreement, the Issuer also issued the Household Consumer Loan
Asset-Backed Certificates, Series 1996-2 (the "Certificates") which
were not registered under the Securities Act of 1933, as amended.
On behalf of the Issuer Household Finance Corporation, as
Administrator, 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 Issuer. 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 Notes 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 Notes (the
"Noteholders") was solicited for any purpose during the
year ended December 31, 1996.
PART II
Item 5. Market for Registrant's Common Equity and Related
Stockholder Matters.
To the best knowledge of the Administrator, there is no
established public trading market for the Notes. As of
January 31, 1997, there were 23 Class A-1 Noteholders, 7
Class A-2 Noteholders, 3 Class A-3 Noteholders and 1
Class B Noteholder, some of whom may be holding Notes 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-1, Class A-2, Class A-3
or the Class B Notes; (ii) the principal amount of Notes
owned by each and (iii) the percent that the principal
amount of Notes owned represents of the outstanding
principal amount of the Class A-1, Class A-2, Class A-3
or the Class B Notes. The information set forth in the
table is based upon information obtained by the
Administrator from the Trustee and from The Depository
Trust Company as of January 31, 1997. The Administrator
is not aware of any Schedules 13D or 13G filed with the
Securities and Exchange Commission in respect of the
Notes.
<PAGE>
Amount Owned
All dollar amounts are
in thousands
Name and Address Principal Percent
Class A-1 Noteholders
Bank of New York $ 81,615 10.28
925 Patterson Plank Road
Secaucus, NJ 07094
Chase Manhattan Bank $393,170 49.52
One Chase Manhattan Plaza
3B - Proxy Department
New York, NY 10081
Northern Trust Company $126,220 15.90
c/o ADP Proxy Services
51 Mercedes Way
Edgewood, NY 11717
Class A-2 Noteholders
Bankers Trust Co./Investment A/C $ 25,000 47.86
16 Wall Street
New York, NY 10286
Citicorp Services, Inc. $ 5,000 9.57
P. O. Box 30576
Tampa, FL 33630-3576
Merrill Lynch, Pierce, Fenner & $ 3,000 5.74
Smith Safekeeping
4 Corporate Plaza
Corporate Park 287, 2nd Floor
Piscataway, NJ 08855
SBB-Custodian $ 7,240 13.86
c/o ADP Proxy Services
51 Mercedes Way
Edgewood, NY 11717
UBS Securities Inc. $ 10,000 19.14
299 Park Avenue, 8th Floor
New York, NY 10171-0026
<PAGE>
Amount Owned
All dollar amounts are
in thousands
Name and Address Principal Percent
Class A-3 Noteholders
Boston Safe Deposit & Trust Co. $ 30,000 44.18
c/o ADP Proxy Services
51 Mercedes Way
Edgewood, NY 11717
Chase Manhattan Bank/Chemical $ 10,000 14.73
c/o ADP Proxy Services
51 Mercedes Way
Edgewood, NY 11717
Prudential Securities Incorporated $ 27,900 41.09
111 8th Avenue, 4th Floor
New York, NY 10011
Class B Noteholder
National Financial Services, Inc. $ 49,370 100.00
c/o ADP Proxy Services
51 Mercedes Way
Edgewood, NY 11717
<PAGE>
Item 13. Certain Relationships and Related Transactions.
None or Not Applicable.
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 Administrator, on behalf of the Issuer,
is obligated to prepare, and has so prepared,
an Annual Statement as to Compliance for the
year 1996. Such document has been filed as an
exhibit to this Form 10-K.
(b) The Registrant filed the following current reports
on Form 8-K for the fourth quarter of 1996:
Date of Reports Items Covered
October 11, 1996 Item 7. - Statement to
November 14, 1996 Noteholders with respect
December 13, 1996 to the distributions on October
11 and 15, 1996, November 14
and 15, 1996, and December 13,
and 14, 1996.
(c) Exhibit 99. Copy of Annual Statement as Compliance
for the year ended December 31, 1996.
(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 Consumer Loan Trust
1996-2 by the undersigned, thereunto duly authorized.
HOUSEHOLD FINANCE CORPORATION,
as Administrator of and on behalf of the
HOUSEHOLD CONSUMER LOAN TRUST 1996-2
(Registrant)
Date: February 17, 1997 By: /s/John W. Blenke
John W. Blenke
Assistant Secretary
U:\WP\HFS088\10K\HCL96-1<PAGE>
Exhibit Index
Exhibit No. Exhibit Page
No.
99 Copy of Annual Statement as to 10
Compliance for the year
ended December 31, 1996
*********************************************
Household Finance Corporation
Household Consumer Loan Corporation
Household Consumer Loan Trust 1996-2
*********************************************
Sum of 1/16/96 - 12/16
Distribution Dates
Ending Pool Principal Balance 3,384,560,372.07
Series 1996-2 Participation Invested Amount 971,581,227.78
Seller Amount 938,413,608.19
Remittances on the Participation 93,764,451.82
Optimum Monthly Principal 73,218,772.22
Accelerated Principal Payment 847,439.49
Ending Class A-1 Note Security Balance 719,933,788.29
Ending Class A-2 Note Security Balance 52,240,000.00
Ending Class A-3 Note Security Balance 67,900,000.00
Ending Class B Note Security Balance 49,370,000.00
Ending Certificate Security Balance 36,886,000.00
Ending Overcollateralization Amount 45,251,439.49
Ending Class A-1 Adjusted Balance 719,933,788.29
Ending Class A-2 Adjusted Balance 52,240,000.00
Ending Class A-3 Adjusted Balance 67,900,000.00
Ending Class B Adjusted Balance 49,370,000.00
Ending Certificate Adjusted Balance 36,886,000.00
Ending Overcollateralization Amount 45,251,439.49
Class A-1 Interest Paid 13,138,334.50
Class A-2 Interest Paid 923,769.06
Class A-3 Interest Paid 1,221,623.42
Class B Interest Paid 923,252.32
Certificate Yield Paid 729,599.24
Class A-1 Unpaid Interest 0.00
Class A-2 Unpaid Interest 0.00
Class A-3 Unpaid Interest 0.00
Class B Unpaid Interest 0.00
Cetificate Unpaid Yield 0.00
Class A-1 Principal Paid 74,066,211.71
Class A-2 Principal Paid 0.00
Class A-3 Principal Paid 0.00
Class B Principal Paid 0.00
Certificate Principal Paid 0.00
OC Principal Paid 0.00
Total Charge-Offs: 0.00
Interest paid per $1,000 Class A-1 16.55
Principal paid per $1,000 Class A-1 93.28
Interest paid per $1,000 Class A-2 17.68
Principal paid per $1,000 Class A-2 0.00
Interest paid per $1,000 Class A-3 17.99
Principal paid per $1,000 Class A-3 0.00
Interest paid per $1,000 Class B 18.70
Principal paid per $1,000 Class B 0.00
Yield Paid per $1000 Certificate 19.78
Principal Paid per $1000 Certificate 0.00
