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, 1997
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. 0-21981
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, 1997 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, 1997.
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
February 10, 1998, there were 14 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 February 10, 1998. 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 $ 75,000 9.45
925 Patterson Plank Road
Secaucus, NJ 07094
Boston Safe Deposit & Trust Company $102,825 12.95
c/o Mellon Bank N.A.
Three Mellon Bank Center
Room 153-3015
Pittsburgh, PA 15259
Chase Manhattan Bank $438,000 55.16
4 New York Plaza - 13th Floor
New York, NY 10004
Swiss Bank Corporation $ 55,500 6.99
New York Branch
222 Broadway
New York, NY 10038
Class A-2 Noteholders
Boston Safe Deposit and Trust Company $ 4,240 8.12
c/o Mellon Bank N.A.
Three Mellon Bank Center
Room 153-3015
Pittsburgh, PA 15259
Bankers Trust Company $ 25,000 47.86
Corpoate Clearance A/C #16
130 Liberty Street
New York, NY 10006
Northern Trust Company $ 5,000 9.57
801 S. Canal C-IN
Chicago, IL 60607
SSB - Custodian $ 6,000 11.49
Global Corp. Action Dept. JAB5W
P. O. Box 1631
Boston, MA 02105-1631
Swiss Bank Corporation $ 10,000 19.14
New York Branch
222 Broadway
New York, NY 10038<PAGE>
Amount Owned
All dollar amounts are
in thousands
Name and Address Principal Percent
Class A-3 Noteholders
Boston Safe Deposit and Trust Company $ 42,900 63.18
c/o Mellon Bank N.A.
Three Mellon Bank Center
Room 153-3015
Pittsburgh, PA 15259
Chase Manhattan Bank/Chemical $ 10,000 14.73
Proxy Department - 13th Floor
4 New York Plaza
New York, NY 10004
SSB - Custodian $ 15,000 22.09
Global Corp. Action Dept. JAB5W
P. O. Box 1631
Boston, MA 02105-1631
Class B Noteholder
National Financial $ 49,370 100.00
Services Corporation
200 Liberty Street
New York, NY 10281
<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 1997. 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 1997:
Date of Reports Items Covered
October 14, 1997 Item 7. - Statement to
November 14, 1997 Noteholders with respect
December 12, 1997 to the distributions on October
14 and 15, 1997, November 14
and 17, 1997, and December 12
and 15, 1997.
(c) Exhibit 99. Copy of Annual Statement as to
Compliance
for the year ended December 31, 1997.
(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: March 2, 1998 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, 1997
*********************************************
Household Finance Corporation
Household Consumer Loan Corporation
Household Consumer Loan Trust 1996-2
*********************************************
Sum of 1/15/97 - 12/15/97
Distribution Dates
Ending Pool Principal Balance
3,965,949,127.56
Series 1996-2 Participation Invested Amount
774,609,045.06
Seller Amount
59,902,453.90
Remittances on the Participation
258,384,272.84
Optimum Monthly Principal
196,972,182.73
Accelerated Principal Payment
2,196,280.19
Ending Class A-1 Note Security Balance
520,765,325.37
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
47,447,719.69
Ending Class A-1 Adjusted Balance
520,765,325.37
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
47,447,719.69
Class A-1 Interest Paid
36,540,627.52
Class A-2 Interest Paid
3,132,381.81
Class A-3 Interest Paid
4,140,031.26
Class B Interest Paid
3,125,023.92
Certificate Yield Paid
2,465,346.72
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
199,168,462.92
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
46.02
Principal paid per $1,000 Class A-1
250.84
Interest paid per $1,000 Class A-2
59.96
Principal paid per $1,000 Class A-2
0.00
Interest paid per $1,000 Class A-3
60.97
Principal paid per $1,000 Class A-3
0.00
Interest paid per $1,000 Class B
63.30
Principal paid per $1,000 Class B
0.00
Yield Paid per $1000 Certificate
66.84
Principal Paid per $1000 Certificate
0.00
