SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report May 14, 1997
HOUSEHOLD CONSUMER LOAN TRUST 1996-2
(Exact name of registrant as specified in its charter)
HOUSEHOLD FINANCE CORPORATION
(Administrator of the Trust)
(Exact name as specified in Administrator's charter)
To be
Delaware 0-21981 Applied For
(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
<PAGE>
Item 7. FINANCIAL STATEMENTS AND EXHIBITS
(c) Exhibits
99 Statement to Series 1996-2 Participants with respect to the
distribution on May 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 1996-2 Supplement to the Pooling and Servicing
Agreement, (b) Noteholders with respect to the Payment Date on
May 15, 1997 as provided for under Section 3.23 of the
Indenture dated as of August 1, 1996 between Household
Consumer Loan Trust 1996-2 and The Bank of New York, as
Indenture Trustee, and (c) Certificateholders with respect to
the Payment Date on May 15, 1997 as provided for under Section
5.04 of the Trust Agreement dated as of August 1, 1996 between
Household Consumer Loan Corporation and The Chase Manhattan
Bank Delaware, as Owner Trustee.
-2-
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 1996-2
(Registrant)
By: /s/ J. W. Blenke
J. W. Blenke
Authorized Representative
Dated: May 28, 1997
-3-<PAGE>
EXHIBIT INDEX
Exhibit
Number Exhibit Page
5
99 Statement to Series 1996-2 Participants with respect to the
distribution on May 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 1996-2 Supplement to the Pooling and Servicing
Agreement, (b) Noteholders with respect to the Payment Date on
May 15, 1997 as provided for under Section 3.23 of the
Indenture dated as of August 1, 1996 between Household
Consumer Loan Trust 1996-2 and The Bank of New York, as
Indenture Trustee, and (c) Certificateholders with respect to
the Payment Date on May 15, 1997 as provided for under Section
5.04 of the Trust Agreement dated as of August 1, 1996 between
Household Consumer Loan Corporation and The Chase Manhattan
Bank Delaware, as Owner Trustee.
U:\WP\HFS088\8K\HCLT96-2.8K
-4-
Household Finance Corporation
Household Consumer Loan Corporation
Household Consumer Loan Trust Series 1996-2
No. of PMTs Since Issuance: 9
Distribution Date: 05/14/97
Payment Date: 05/15/97
Collection Period Beginning: 04/01/97
Collection Period Ending: 04/30/97
Note and Certificate Accrual Beginning: 04/15/97
Note and Certificate Accrual Ending: 05/15/97
PAYMENT CALCULATIONS:
OC Balance as % of Beginning Participation Invested Amount 5.10%
OC Balance as % of Ending Participation Invested Amount 5.22%
OC Balance as % of Ending Participation Invested Amount (3 month a 4.98%
Does Early Amortization Start Based on OC/Part. Invstd. Amt. Test ---
Is the MAP Over? 0
Is this the Early Amortization Period? 0
Interest Allocation Percentage Calculation:
Numerator 903,493,570.24
Denominator-Component(x)-Aggregate Receivables & Partc. Inter 3,563,593,822.63
Denominator-Component(y)-Aggregate Numerators 3,213,602,699.27
Applicable Interest Allocation Percentage 25.35%
Principal Allocation Percentage Calculation:
Numerator 903,493,570.24
Denominator-Component(x)-Aggregate Receivables & Partc. Inter 3,563,593,822.63
Denominator-Component(y)-Aggregate Numerators 3,213,602,699.27
Applicable Principal Allocation Percentage 25.35%
Default Allocation Percentage Calculation:
Numerator 903,493,570.24
Denominator-Component(x)-Aggregate Receivables & Partc. Inter 3,563,593,822.63
Denominator-Component(y)-Aggregate Numerators 3,213,602,699.27
Default Allocation Percentage (Floating Allocation Percentage) 25.35%
Minimum Principal Amount Calculation:
1.8% of Participation Invested Amount 16,262,884.26
Series Participation Interest Default Amount (Sec.4.11(a)(iii)) 5,758,637.36
Excess of (i)1.8% of Part. Inv. Amt. over (ii)Series Part. Inte 10,504,246.91
Minimum Principal Amount 10,504,246.91
Investor Principal Collections 12,443,266.55
Investor Finance Charge and Admin. Collections (4.11a) 15,046,525.87
Investor Allocated Defaulted Amounts 5,758,637.36
DEPOSIT TRUST CALCULATIONS
Beginning Participation Unpaid Principal Balance 903,493,570.24
Beginning Participation Invested Amount 903,493,570.24
Ending Participation Unpaid Principal Balance 885,291,666.33
Ending Participation Invested Amount 885,291,666.33
Beginning Participation Unpaid Principal Balance x (PRIME-1.50%) 5,270,379.16
Note Interest & Cert Yield Amounts Due Pursuant to Sec.3 4,251,384.37
Participation Invested Amount x 25bps per annum 188,227.83
Participation Interest Distribution Amount 5,270,379.16
Application of Investor Finance Charges & Administrative Collections:
Investor Finance Charge and Admin. Collections (4.11a) 15,046,525.87
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) 5,270,379.16
Series Participation Interest Default Amount (Sec.4.11(a)(iii)) 5,758,637.36
Reimbursed Series Particpation Interest Charge-Offs (Sec.4.11(a 0.00
Servicing Fee if HFC is the Servicer (Sec. 4.11 (a)(v)) 1,505,822.62
Excess (Sec. 4.11 (a)(vi)) 2,511,686.73
Reconciliation Check 0.00
Series Participation Interest Monthly Principal 18,201,903.90
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 0.00
Ending Unreimbursed Participation Interest Charge-Offs 0.00
Available Investor Principal Collections 18,201,903.90
Participation Interest Distribution Amount 5,270,379.16
Series Participation Interest Charge-Offs 0.00
OWNER TRUST CALCULATIONS
Note Interest & Cert Yield Amounts Due Pursuant to Sec. 3 4,251,384.37
Excess Interest 1,018,994.79
Beginning Net Charge-Offs 0.00
Reversals 0.00
+Available Investor Principal Collections 18,201,903.90
+Series Participation Interest Charge Offs 0.00
+ Lesser of Excess Interest and Carryover Charge Offs 0.00
Optimum Monthly Principal 18,201,903.90
Are the Notes Retired ? 0.00
Accelerated Principal Payment 188,227.83
Beginning Class A-1 Security Balance 651,058,079.15
Beginning Class A-2 Security Balance 52,240,000.00
Beginning Class A-3 Security Balance 67,900,000.00
Beginning Class B Security Balance 49,370,000.00
Beginning Certificate Security Balance 36,886,000.00
Beginning Overcollateralization Amount plus APP 46,227,718.91
Beginning Class A-1 Adjusted Balance 651,058,079.15
Beginning Class A-2 Adjusted Balance 52,240,000.00
Beginning Class A-3 Adjusted Balance 67,900,000.00
Beginning Class B Adjusted Balance 49,370,000.00
Beginning Certficate Adjusted Balance 36,886,000.00
Beginning Overcollateralization Amount plus APP 46,227,718.91
Class A-1 Bal After Payment pursuant to clause in Sec 3.05(a) 632,856,175.25
Class A-2 Bal After Payment pursuant to clause in Sec 3.05(a) 52,240,000.00
Class A-3 Bal After Payment pursuant to clause in Sec 3.05(a) 67,900,000.00
Class B Bal After Payment pursuant to clause in Sec 3.05(a)(i 49,370,000.00
Certificate Bal After Payment pursuant to clause in Sec.3.05( 36,886,000.00
Class A-2 Minimum Adjusted Principal Balance 18,800,000.00
Class A-3 Minimum Adjusted Principal Balance 24,500,000.00
Class B Minimum Adjusted Principal Balance 17,800,000.00
Certificate Minimum Adjusted Principal Balance 7,900,000.00
Minimum Overcollateralization Amount 14,800,000.00
Certificate Minimum Balance Target 26,827,878.66
Scheduled Cert Payment to Certificate Minimum Balance Targe 10,058,121.34
Class A-1 Targeted Balance 460,351,666.49
Class A-2 Targeted Balance (77,013,408.46)
Class A-3 Targeted Balance (5,137,287.42)
Class B Targeted Balance 17,207,574.46
Certificate Targeted Balance 7,675,699.45
Class A-1:Payment Required to get to Target 190,706,412.66
Class A-2:Payment Required to get to Target or Min Adjusted 33,440,000.00
Class A-3:Payment Required to get to Target or Min Adjusted 43,400,000.00
Class B:Payment Required to get to Target or Min Adjusted Bal 31,570,000.00
Certificate:Payment Required to get to Target or Min Adjusted 28,986,000.00
OC:Payment to get to Minimum Overcollateralization Amount 31,427,718.91
Section 3.05 Payment of Principal and Interest; Defaulted Interes 0.00
Pay Certificate Yield in step (ii) (1= Yes) 1.00
Remittances on the Participation 23,472,283.06
Interest and Yield
(i) Pay Class A-1 Interest Distribution - Sec. 3.05 (a)(i)(a) 3,177,977.25
Pay Class A-2 Interest Distribution - Sec. 3.05 (a)(i)(b) 261,526.50
Pay Class A-3 Interest Distribution - Sec. 3.05 (a)(i)(c) 345,582.71
Pay Class B Interest Distribution - Sec. 3.05 (a)(i)(d) 260,735.31
Pay Certificates the Certificate Yield - Sec. 3.05 (a)(i)( 205,562.60
Principal up to Optimum Monthly Principal
(ii) Pay Class A-1 to Targeted Principal Balance - Sec. 3.05 (a 18,201,903.90
Pay Class A-2 to Targeted Principal Balance - Sec. 3.05 (a 0.00
Pay Class A-3 to Targeted Principal Balance - Sec. 3.05 (a 0.00
Pay Class B to Targeted Principal Balance - Sec. 3.05 (a)( 0.00
ONLY Pay CertificateYield if not paid pursuant to Sec. 3.0 0.00
Principal up to Optimal Monthly Principal
(iii)Pay Certificate to Targeted Principal Balance - Sec. 3.05 0.00
(iv) Pay OC Remaining Optimal Monthly Principal Amount - Sec. 3.0 0.00
Principal up to the Accelerated Principal Payment Amount
(v) Pay Class A-1 to Targeted Principal Balance - Sec. 3.05 (a)( 188,227.83
Pay Class A-2 to Targeted Principal Balance - Sec. 3.05 (a 0.00
Pay Class A-3 to Targeted Principal Balance - Sec. 3.05 (a 0.00
Pay Class B to Targeted Principal Balance - Sec. 3.05 (a)( 0.00
Pay Class A-1 to zero - Sec. 3.05 (a)(v)(e) 0.00
Pay Class A-2 to zero - Sec. 3.05 (a)(v)(f) 0.00
Pay Class A-3 to zero - Sec. 3.05 (a)(v)(g) 0.00
Pay Class B to zero - Sec. 3.05 (a)(v)(h) 0.00
Principal up to Optimal Monthly Principal
(vi) Pay Class A-1 to zero - Sec. 3.05 (a)(vi)(a) 0.00
Pay Class A-2 to zero - Sec. 3.05 (a)(vi)(b) 0.00
Pay Class A-3 to zero - Sec. 3.05 (a)(vi)(c) 0.00
Pay Class B to zero - Sec. 3.05 (a)(vi)(d) 0.00
Pay Certificates up to Certificate Min. Bal. or zero - Sec 0.00
Pay HCLC Optimum Monthly Principal provided OC > zero - Se 0.00
(vii) Remaining Amounts to HCLC - Sec. 3.05 (a)(vii) 830,766.96
Total Reconciliation Check 0.00
Accelerated Principal Reconciliation 0.00
Optimum Monthly Principal Reconciliation 0.00
BOND SUMMARY:
Beginning Class A-1 Note Security Balance $651,058,079.15
Beginning Class A-2 Note Security Balance $52,240,000.00
Beginning Class A-3 Note Security Balance $67,900,000.00
Beginning Class B Note Security Balance $49,370,000.00
Beginning Certificate Security Balance $36,886,000.00
Beginning Overcollateralization Amount $46,039,491.09
Beginning Class A-1 Adjusted Balance $651,058,079.15
Beginning Class A-2 Adjusted Balance $52,240,000.00
Beginning Class A-3 Adjusted Balance $67,900,000.00
Beginning Class B Adjusted Balance $49,370,000.00
Beginning Certficate Adjusted Balance $36,886,000.00
Beginning Overcollateralization Amount $46,039,491.09
Ending Class A-1 Note Security Balance $632,667,947.42
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 $46,227,718.91
Ending Class A-1 Adjusted Balance $632,667,947.42
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 Certficate Adjusted Balance $36,886,000.00
Ending Overcollateralization Amount $46,227,718.91
Class A-1 Note Rate Capped at 13% 5.86%
Class A-2 Note Rate Capped at 15% 6.01%
Class A-3 Note Rate Capped at 15% 6.11%
Class B Note Rate Capped at 15% 6.34%
Certificate Rate Capped at 16% 6.69%
Class A-1 Interest Due $3,177,977.25
Class A-2 Interest Due $261,526.50
Class A-3 Interest Due $345,582.71
Class B Interest Due $260,735.31
Certificate Yield Due $205,562.60
Class A-1 Interest Paid $3,177,977.25
Class A-2 Interest Paid $261,526.50
Class A-3 Interest Paid $345,582.71
Class B Interest Paid $260,735.31
Certificate Yield Paid $205,562.60
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
Certificate Unpaid Yield $0.00
Class A-1 Principal Paid $18,390,131.73
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
Beginning Class A-1 Net Charge-Off $0.00
Beginning Class A-2 Net Charge-Off $0.00
Beginning Class A-3 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-1 $0.00
Reversals Allocated to Class A-2 $0.00
Reversals Allocated to Class A-3 $0.00
Reversals Allocated to Class B $0.00
Reversals Allocated to Certificates $0.00
Reversals Allocated to OC plus Acclerated Principal Payments $188,227.83
Total Charge-Offs: $0.00
Charge-Offs Allocated to Class A-1 $0.00
Charge-Offs Allocated to Class A-2 $0.00
Charge-Offs Allocated to Class A-3 $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-1 Net Charge-Off $0.00
Ending Class A-2 Net Charge-Off $0.00
Ending Class A-3 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 Mo 4.08%
Designated Certificate / Certificate Security (Balance Beginning o 1.000000%
Designated Certificate - Beginning of Month $368,860.00
Principal Payments in Respect of Designated Certificate (Sec. 3.0 $0.00
Designated Certificate - End of Month $368,860.00
Interest Payments in Respect of Designated Certificate (Sec. 3.05 $2,055.63
Designated Certificateholder Accelerated Principal Payments-Begi $1,635,491.09
Accelerated Principal Payment (Sec. 3.05 (vi)) $188,227.83
Payments to Holder of Designated Certificate in respect to Acc. Pr $0.00
Designated Certificateholder Accelerated Principal Payments-Endi $1,823,718.91
Designated Certificateholder Holdback Amount (BOM) $44,404,000.00
Payments to Designated Certificates in Reduction of Holdback Amoun $0.00
Designated Certificateholder Holdback Amount (End of Month) $44,404,000.00
Remaining Payments to Designated Certificates (Sec. 3.05 paragraph $0.00
Remaining Amounts to Issuer (Sec. 3.05 (x)) $830,766.96
MONTHLY SECURITY REPORT
Household Consumer Loan Trust 1996-2
Distribution Date 14-May-97
Payment Date: 15-May-97
Collection Period Beginning 01-Apr-97
Collection Period Ending: 30-Apr-97
Note and Certificate Accrual Beginning: 15-Apr-97
Note and Certificate Accrual Ending: 15-May-97
Ending Pool Principal Balance $3,480,187,223.15
Series 1996-2 Participation Invested Amount $885,291,666.33
Seller Amount $333,066,755.64
Remittances on the Participation $23,472,283.06
Optimum Monthly Principal $18,201,903.90
Accelerated Principal Payment $188,227.83
Beginning Class A-1 Note Security Balance $651,058,079.15
Beginning Class A-2 Note Security Balance $52,240,000.00
Beginning Class A-3 Note Security Balance $67,900,000.00
Beginning Class B Note Security Balance $49,370,000.00
Beginning Certificate Security Balance $36,886,000.00
Beginning Overcollateralization Amount $46,039,491.09
Beginning Class A-1 Adjusted Balance $651,058,079.15
Beginning Class A-2 Adjusted Balance $52,240,000.00
Beginning Class A-3 Adjusted Balance $67,900,000.00
Beginning Class B Adjusted Balance $49,370,000.00
Beginning Certificate Adjusted Balance $36,886,000.00
Beginning Overcollateralization Amount $46,039,491.09
Ending Class A-1 Note Security Balance $632,667,947.42
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 $46,227,718.91
Ending Class A-1 Adjusted Balance $632,667,947.42
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 $46,227,718.91
Class A-1 Note Rate Capped at 13% 5.857500%
Class A-2 Note Rate Capped at 15% 6.007500%
Class A-3 Note Rate Capped at 15% 6.107500%
Class B Note Rate Capped at 15% 6.337500%
Certificate Rate Capped at 16% 6.687500%
Class A-1 Interest Due $3,177,977.25
Class A-2 Interest Due $261,526.50
Class A-3 Interest Due $345,582.71
Class B Interest Due $260,735.31
Certificate Yield Due $205,562.60
Class A-1 Interest Paid $3,177,977.25
Class A-2 Interest Paid $261,526.50
Class A-3 Interest Paid $345,582.71
Class B Interest Paid $260,735.31
Certificate Yield Paid $205,562.60
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 $18,390,131.73
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
Beginning Class A-1 Net Charge-Off $0.00
Beginning Class A-2 Net Charge-Off $0.00
Beginning Class A-3 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-1 $0.00
Reversals Allocated to Class A-2 $0.00
Reversals Allocated to Class A-3 $0.00
Reversals Allocated to Class B $0.00
Reversals Allocated to Certificates $0.00
Reversals Allocated to OC plus Acclerated Principal Payments $188,227.83
Total Charge-Offs: $0.00
Charge-Offs Allocated to Class A-1 $0.00
Charge-Offs Allocated to Class A-2 $0.00
Charge-Offs Allocated to Class A-3 $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-1 Net Charge-Off $0.00
Ending Class A-2 Net Charge-Off $0.00
Ending Class A-3 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 4.002490
Principal paid per $1,000 Class A-1 23.161375
Interest paid per $1,000 Class A-2 5.006250
Principal paid per $1,000 Class A-2 0.000000
Interest paid per $1,000 Class A-3 5.089583
Principal paid per $1,000 Class A-3 0.000000
Interest paid per $1,000 Class B 5.281250
Principal paid per $1,000 Class B 0.000000
Yield Paid per $1,000 Certificate 5.572917
Principal Paid per $1,000 Certificate 0.000000
