<PAGE> 1
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 September 14, 1999
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>
<PAGE> 2
Item 7. FINANCIAL STATEMENTS AND EXHIBITS
(c) Exhibits
99 Statement to Series 1996-2 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 1996-2 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 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 September 15, 1999 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-
<PAGE>
<PAGE> 3
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: September 21, 1999
-3-
<PAGE>
<PAGE> 4
EXHIBIT INDEX
Exhibit
Number Exhibit Page
5
99 Statement to Series 1996-2 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 1996-2 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 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 September 15, 1999 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
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<PAGE> 1
<TABLE>
<S> <C>
Household Consumer Loan Trust, Series 1996-2
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 469,631,695.69
Beginning Participation Unpaid Principal 469,631,695.69
Balance
Ending Participation Invested Amount 455,338,341.57
Ending Participation Unpaid Principal Balance 455,338,341.57
Accelerated Amortization Date Jul 31, 2001
Is it the Accelerated Amortization Period? 0
0=No
OC Balance as % of Ending Participation 8.521%
Invested Amount (3 month average)
Is it Early Amortization? (No, if 3 month OC 0
Average >or=4.25%)
Investor Finance Charges and Administrative
Collections
Numerator for Floating Allocation 469,631,695.69
Numerator for Fixed Allocation 481,447,605.33
Denominator - Max(Sum of Numerators, Principal 4,233,765,515.08
Receivables)
Applicable Allocation Percentage 11.0925%
Investor FC&A Collections 7,698,785.69
Series Participation Interest Default Amount
Numerator for Floating Allocation 469,631,695.69
Denominator - Max(Sum of Numerators, Principal 4,233,765,515.08
Receivables)
Floating Allocation Percentage 11.0925%
Series Participation Interest Default Amount 3,491,499.61
Principal Allocation Components
Numerator for Floating Allocation 469,631,695.69
Numerator for Fixed Allocation 481,447,605.33
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 5.0276%
and Accelerated Principal Pmt Amount
(d) Series Participation Interest Unpaid 469,631,695.69
Principal Balance
(e) Actual days in the Interest Period 32
Series Participation Monthly Interest, [a*d*e] 2,713,427.58
Series Participation Interest Interest 0.00
Shortfall
Previous Series Participation Interest 0.00
Interest Shortfall
Additional Interest 0.00
<PAGE>
<PAGE> 2
Series Participation Interest Monthly
Principal
Available Investor Principal Collections, 14,293,354.12
[a+m+n]
(a) Investor Principal Collections, [Max(b,h) 10,801,854.51
or e]
(b) prior to Accelerated Amort. Date or not 10,801,854.51
Early Amort. Period, [c*d]
(c) Floating Allocation Percentage 11.0925%
(d) Net Principal Collections 97,379,541.38
(e) after Accelerated Amort Date or Early 18,541,079.07
Amort Period, [f*g]
(f) Fixed Allocation Percentage 11.3716%
(g) Collections of Principal
163,046,986.46
(h) Minimum Principal Amount, [Min(i,l)] 4,961,870.91
(i) Floating Allocation Percentage of 18,086,035.34
Principal Collections
(j) 1.8% of the Series Participation Interest 8,453,370.52
Invested Amount
(k) Series Participation Interest Net Default 3,491,499.61
Payment Amount
(l) the excess of (j) over (k) 4,961,870.91
(m) Series Participation Interest Net Default 3,491,499.61
Payment Amount
(n) Optional Repurchase Amount (principal 0.00
only) at Sec. 9
Application of Investor Finance Charges and
Admin Collections
Investor Finance Charges and Admin. 7,698,785.69
Collections [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 2,713,427.58
[Sec. 4.11(a)(ii)]
Series Participation Interest Interest 0.00
Shorfall [Sec. 4.11(a)(ii)]
Additional Interest [Sec. 4.11(a)(ii)] 0.00
Series Participation Interest Default Amount 3,491,499.61
[Sec. 4.11(a)(iii)]
Reimbursed Series Participation Interest 0.00
Charge-Offs [Sec. 4.11(a)(iv)]
Servicing Fee Paid [Sec. 4.11(a)(v)] 782,719.49
Excess [Sec. 4.11(a)(vi)] 711,139.01
Series Participation Investor Charge Off [Sec. 0.00
4.12(a)]
<PAGE>
<PAGE> 3
Series 1996-2
Owner Trust
Calculations
Due Period Aug 31,
Ending 1999
Payment Date Sep 15,
1999
Calculation
of Interest
Expense
</TABLE>
<TABLE>
<CAPTION>
Index (LIBOR) 5.268750%
Accrual end Sep 15, Aug 16, 30
date, accrual 1999 1999
beginning
date and days
in Interest
Period
<S> <C> <C> <C> <C> <C> <C>
Class A-1 Class A-2 Class A-3 Class B Certificate Overcoll
s Amount
Beginning 244,108,180 50,656,353 65,841,424 47,873,316 21,133,426 40,018,996
Unpaid
Principal
Balance
Previously 0.00 0.00 0.00 0.00 0.00
unpaid
interest/yiel
d
Spread to 0.17% 0.32% 0.42% 0.65% 1.00%
index
Rate (capped 5.438750% 5.588750% 5.688750% 5.918750% 6.268750%
at 13%, 15%,
15%, 15%,
16%)
Interest/Yiel 1,106,369 235,921 312,130 236,125 110,400
d Payable on
the Principal
Balance
Interest on 0 0 0 0 0
previously
unpaid
interest/yiel
d
Interest/Yiel 1,106,369 235,921 312,130 236,125 110,400
d Due
Interest/Yiel 1,106,369 235,921 312,130 236,125 110,400
d Paid
Summary
Beginning 244,108,180 50,656,353 65,841,424 47,873,316 21,133,426 40,018,996
Security
Balance
Beginning 244,108,180 50,656,353 65,841,424 47,873,316 21,133,426
Adjusted
Balance
Principal 7,430,082 1,541,738 2,003,900 1,457,036 643,201 1,315,237
Paid
Ending 236,678,098 49,114,615 63,837,525 46,416,280 20,490,225 38,801,599
Security
Balance
Ending 236,678,098 49,114,615 63,837,525 46,416,280 20,490,225
Adjusted
Balance
Ending 4.5000%
Certificate
Balance as %
Participation
Interest
Invested
Amount
Targeted
Balance 236,775,938 49,114,615 63,837,525 46,416,280 20,490,225
<PAGE>
<PAGE> 4
Minimum
Adjusted 18,800,000 24,500,000 17,800,000 7,900,000 14,800,000
Balance
Certificate
Minimum 13,798,573
Balance
Ending OC
Amount as 33,704,876
Holdback
Amount
Ending OC
Amount as 5,096,723
Accelerated
Prin Pmts
Beginning Net 0.00 0.00 0.00 0.00 0.00 0.00
Charge offs
Reversals 0.00 0.00 0.00 0.00 0.00 0.00
Charge offs 0.00 0.00 0.00 0.00 0.00 0.00
Ending Net 0.00 0.00 0.00 0.00 0.00 0.00
Charge Offs
Interest/Yiel $1.3934124 $4.5161066 $4.5968999 $4.7827661 $2.9930093
d Paid per
$1000
Principal $9.3577865 $29.5126024 $29.5125134 $29.5125773 $17.4375354
Paid per
$1000
<PAGE>
<PAGE> 5
</TABLE>
<TABLE>
<CAPTION>
Series 1996-2 Owner Trust Calculations
Due Period August 1999
Payment Date Sep 15, 1999
<S> <C>
Optimum Monthly Principal [a+b+c]
(a) Available Investor Principal Collections 14,293,354.12
(b) Series Participation Interest Charge Offs 0.00
(c) Lesser of Excess Interest and Carryover 0.00
Charge offs
Accelerated Principal Payment 97,839.94
Series Participation Interest Monthly Interest 2,713,427.58
Allocation of Optimum Monthly Principal and
Series Part. Interest Monthly Interest
Interest and Yield
Pay Class A-1 Interest Distribution- Sec. 1,106,369.47
3.05(a)(i)(a)
Pay Class A-2 Interest Distribution- Sec. 235,921.41
3.05(a)(i)(b)
Pay Class A-3 Interest Distribution- Sec. 312,129.50
3.05(a)(i)(c)
Pay Class B Interest Distribution- Sec. 236,125.16
3.05(a)(i)(d)
Pay Certificates the Certificate Yield- Sec. 110,400.14
3.05(a)(i)(e)
Principal up to Optimum Monthly Principal
Balance
Pay Class A-1 to Targeted Principal Balance- 7,332,242.56
Sec. 3.05(a)(ii)(a)
Pay Class A-2 to Targeted Principal Balance 1,541,738.35
subject to Min Adj Bal- Sec. 3.05(a)(ii)(b)
Pay Class A-3 to Targeted Principal Balance 2,003,899.66
subject to Min Adj Bal- Sec. 3.05(a)(ii)(c)
Pay Class B to Targeted Principal Balance 1,457,035.94
subject to Min Adj Bal- Sec. 3.05(a)(ii)(d)
Pay Certificate Yield if not paid pursuant to 0.00
Sec. 3.05 (a)(i)(e)
Principal up to Optimal Monthly Principal
Pay Certificate to Targeted Principal Balance 643,200.93
subject to Min Adj Bal- Sec. 3.05(a)(iii)
Pay OC Remaining Optimal Monthly Prin Amt 1,315,236.68
subject to OC Min Bal- Sec. 3.05(a)(iv)
Principal up to Accelerated Principal Payment
Amout
Pay Class A-1 to Targeted Principal Balance 0.00
subject to Min Adj Bal- Sec. 3.05(a)(v)(a)
Pay Class A-2 to Targeted Principal Balance 0.00
subject to Min Adj Bal- Sec. 3.05(a)(v)(b)
Pay Class A-3 to Targeted Principal Balance 0.00
subject to Min Adj Bal- Sec. 3.05(a)(v)(c)
Pay Class B to Targeted Principal Balance 0.00
subject to Min Adj Bal- Sec. 3.05(a)(v)(d)
Pay Class A-1 to zero- Sec. 3.05(a)(v)(e) 97,839.94
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
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 Minimum 0.00
Balance or zero- Sec. 3.05(a)(vi)(e)
Pay HCLC Optimum Monthly Principal provided 0.00
OC >0- Sec. 3.05(a)(vi)(f)
Remaining Amounts to Holder of Designated 614,641.96
Certificate - Sec. 3.05(a)(vii)
<PAGE>
<PAGE> 6
Allocations of Distributions to
Overcollateralization Amount
Available Distributions
Pay OC Remaining Optimal Monthly Prin Amt 1,315,236.68
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 97,839.94
Accelerated Principal Payments
To Designated Certificate Holder up to Holdback 1,217,396.74
Amount
To HCLC any remaining amounts 0.00
Principal paid to the Designated Certificate 6,432.01
</TABLE>
