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 August 13, 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
Item 7. FINANCIAL STATEMENTS AND EXHIBITS
(c) Exhibits
99 Statement to Series 1996-2 Participants with respect to the
distribution on August 13, 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
August 16, 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 August 16, 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-
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: August 27, 1999
-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:
J. W. Blenke
Authorized Representative
Dated: August 27, 1999
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EXHIBIT INDEX
Exhibit
Number Exhibit Page
5
99 Statement to Series 1996-2 Participants with respect to the
distribution on August 13, 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
August 16, 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 August 16, 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
-4-
Household Consumer Loan Trust, Series 1996-2
Deposit Trust Calculations
Previous Due Period Ending Jun 30, 1999
Current Due Period Ending Jul 31, 1999
Prior Distribution Date Jul 14, 1999
Distribution Date Aug 13, 1999
Beginning Trust Principal Receivables 4,131,498,693.96
Average Principal Receivables 4,130,593,246.88
FC&A Collections (Includes Recoveries) 63,953,339.31
Principal Collections 126,063,460.22
Additional Balances 54,118,984.50
Net Principal Collections 71,944,475.72
Defaulted Amount 29,430,452.81
Miscellaneous Payments 0.00
Principal Recoveries 1,891,023.00
Beginning Participation Invested Amount 481,447,605.33
Beginning Participation Unpaid Principal 481,447,605.33
Balance
Ending Participation Invested Amount 469,631,695.69
Ending Participation Unpaid Principal Balance 469,631,695.69
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 481,447,605.33
Numerator for Fixed Allocation 493,461,277.93
Denominator - Max(Sum of Numerators, Principal 4,130,593,246.88
Receivables)
Applicable Allocation Percentage 11.6557%
Investor FC&A Collections 7,454,179.15
Series Participation Interest Default Amount
Numerator for Floating Allocation 481,447,605.33
Denominator - Max(Sum of Numerators, Principal 4,130,593,246.88
Receivables)
Floating Allocation Percentage 11.6557%
Series Participation Interest Default Amount 3,430,311.38
Principal Allocation Components
Numerator for Floating Allocation 481,447,605.33
Numerator for Fixed Allocation 493,461,277.93
Denominator - Max(Sum of Numerators, Principal 4,130,593,246.88
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 5.6171%
and Accelerated Principal Pmt Amount
(d) Series Participation Interest Unpaid 481,447,605.33
Principal Balance
(e) Actual days in the Interest Period 30
Series Participation Monthly Interest, [a*d*e] 2,607,841.20
Series Participation Interest Interest 0.00
Shortfall
Previous Series Participation Interest Interest 0.00
Shortfall
Additional Interest 0.00
Series Participation Interest Monthly Principal
Available Investor Principal Collections, 11,815,909.64
[a+m+n]
(a) Investor Principal Collections, [Max(b,h) 8,385,598.26
or e]
(b) prior to Accelerated Amort. Date or not 8,385,598.26
Early Amort. Period, [c*d]
(c) Floating Allocation Percentage 11.6557%
(d) Net Principal Collections 71,944,475.72
(e) after Accelerated Amort Date or Early Amort 15,060,169.92
Period, [f*g]
(f) Fixed Allocation Percentage 11.9465%
(g) Collections of Principal
126,063,460.22
(h) Minimum Principal Amount, [Min(i,l)] 5,235,745.52
(i) Floating Allocation Percentage of 14,693,519.17
Principal Collections
(j) 1.8% of the Series Participation Interest 8,666,056.90
Invested Amount
(k) Series Participation Interest Net Default 3,430,311.38
Payment Amount
(l) the excess of (j) over (k) 5,235,745.52
(m) Series Participation Interest Net Default 3,430,311.38
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 7,454,179.15
[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 2,607,841.20
[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 3,430,311.38
[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)] 802,412.68
Excess [Sec. 4.11(a)(vi)] 613,613.89
Series Participation Investor Charge Off [Sec. 0.00
4.12(a)]
Series 1996-2 Owner Trust Calculations
Due Period July 1999
Payment Date Aug 16, 1999
Optimum Monthly Principal [a+b+c]
(a) Available Investor Principal Collections 11,815,909.64
(b) Series Participation Interest Charge Offs 0.00
(c) Lesser of Excess Interest and Carryover 0.00
Charge offs
Accelerated Principal Payment 100,301.58
Series Participation Interest Monthly Interest 2,607,841.20
Allocation of Optimum Monthly Principal and
Series Part. Interest Monthly Interest
Interest and Yield
Pay Class A-1 Interest Distribution- Sec. 1,190,077.54
3.05(a)(i)(a)
Pay Class A-2 Interest Distribution- Sec. 253,884.23
3.05(a)(i)(b)
Pay Class A-3 Interest Distribution- Sec. 335,990.00
3.05(a)(i)(c)
Pay Class B Interest Distribution- Sec. 254,332.10
3.05(a)(i)(d)
Pay Certificates the Certificate Yield- Sec. 119,013.85
3.05(a)(i)(e)
Principal up to Optimum Monthly Principal
Balance
Pay Class A-1 to Targeted Principal Balance- 6,041,468.58
Sec. 3.05(a)(ii)(a)
Pay Class A-2 to Targeted Principal Balance 1,274,511.28
subject to Min Adj Bal- Sec. 3.05(a)(ii)(b)
Pay Class A-3 to Targeted Principal Balance 1,656,566.90
subject to Min Adj Bal- Sec. 3.05(a)(ii)(c)
Pay Class B to Targeted Principal Balance 1,204,490.20
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 531,715.94
subject to Min Adj Bal- Sec. 3.05(a)(iii)
Pay OC Remaining Optimal Monthly Prin Amt 1,107,156.74
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) 100,301.58
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 354,241.90
Certificate - Sec. 3.05(a)(vii)
Allocations of Distributions to
Overcollateralization Amount
Available Distributions
Pay OC Remaining Optimal Monthly Prin Amt 1,107,156.74
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 100,301.58
Accelerated Principal Payments
To Designated Certificate Holder up to Holdback 1,006,855.16
Amount
To HCLC any remaining amounts 0.00
Principal paid to the Designated Certificate 5,317.16
<PAGE>
Series 1996-2
Owner Trust
Calculations
Due Period Ending Jul 31, 1999
Payment Date Aug 16, 1999
Calculation of
Interest Expense
Index (LIBOR) 5.180000%
Accrual end date, Aug 16, 1999 Jul 15, 1999 32
accrual beginning
date and days in
Interest Period
Class A-1 Class A-2 Class A-3 Class B
Certificate Overcoll
s Amount
Beginning Unpaid 250,249,950 51,930,865 67,497,991 49,077,806
21,665,142 41,025,851
Principal Balance
Previously unpaid 0.00 0.00 0.00 0.00
0.00
interest/yield
Spread to index 0.17% 0.32% 0.42% 0.65%
1.00%
Rate (capped at 5.350000% 5.500000% 5.600000% 5.830000%
6.180000%
13%, 15%, 15%,
15%, 16%)
Interest/Yield 1,190,078 253,884 335,990 254,332
119,014
Payable on the
Principal Balance
Interest on 0 0 0 0
0
previously unpaid
interest/yield
Interest/Yield 1,190,078 253,884 335,990 254,332
119,014
Due
Interest/Yield 1,190,078 253,884 335,990 254,332
119,014
Paid
Summary
Beginning
Security Balance 250,249,950 51,930,865 67,497,991 49,077,806
21,665,142 41,025,851
Beginning
Adjusted Balance 250,249,950 51,930,865 67,497,991 49,077,806
21,665,142
Principal Paid
6,141,770 1,274,511 1,656,567 1,204,490
531,716 1,107,157
Ending Security
Balance 244,108,180 50,656,353 65,841,424 47,873,316
21,133,426 40,018,996
Ending Adjusted
Balance 244,108,180 50,656,353 65,841,424 47,873,316
21,133,426
Ending
4.5000%
Certificate
Balance as %
Participation
Interest Invested
Amount
Targeted Balance
244,208,482 50,656,353 65,841,424 47,873,316
21,133,426
Minimum Adjusted
Balance 18,800,000 24,500,000 17,800,000
7,900,000 14,800,000
Certificate
Minimum Balance
14,231,719
Ending OC Amount
as Holdback
34,922,273
Amount
Ending OC Amount
as Accelerated
5,096,723
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 Charge 0.00 0.00 0.00 0.00
0.00 0.00
Offs
Interest/Yield $1.4988382 $4.8599585 $4.9483063 $5.1515515
$3.2265317
Paid per $1000
Principal Paid $7.7352269 $24.3972297 $24.3971561 $24.3972088
$14.4151152
per $1000
Series 1996-2 Owner Trust Calculations
Due Period July 1999
Payment Date Aug 16, 1999
Optimum Monthly Principal [a+b+c]
(a) Available Investor Principal Collections 11,815,909.64
(b) Series Participation Interest Charge Offs 0.00
(c) Lesser of Excess Interest and Carryover 0.00
Charge offs
Accelerated Principal Payment 100,301.58
Series Participation Interest Monthly Interest 2,607,841.20
Allocation of Optimum Monthly Principal and
Series Part. Interest Monthly Interest
Interest and Yield
Pay Class A-1 Interest Distribution- Sec. 1,190,077.54
3.05(a)(i)(a)
Pay Class A-2 Interest Distribution- Sec. 253,884.23
3.05(a)(i)(b)
Pay Class A-3 Interest Distribution- Sec. 335,990.00
3.05(a)(i)(c)
Pay Class B Interest Distribution- Sec. 254,332.10
3.05(a)(i)(d)
Pay Certificates the Certificate Yield- Sec. 119,013.85
3.05(a)(i)(e)
Principal up to Optimum Monthly Principal
Balance
Pay Class A-1 to Targeted Principal Balance- 6,041,468.58
Sec. 3.05(a)(ii)(a)
Pay Class A-2 to Targeted Principal Balance 1,274,511.28
subject to Min Adj Bal- Sec. 3.05(a)(ii)(b)
Pay Class A-3 to Targeted Principal Balance 1,656,566.90
subject to Min Adj Bal- Sec. 3.05(a)(ii)(c)
Pay Class B to Targeted Principal Balance 1,204,490.20
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 531,715.94
subject to Min Adj Bal- Sec. 3.05(a)(iii)
Pay OC Remaining Optimal Monthly Prin Amt 1,107,156.74
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) 100,301.58
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 354,241.90
Certificate - Sec. 3.05(a)(vii)
Allocations of Distributions to
Overcollateralization Amount
Available Distributions
Pay OC Remaining Optimal Monthly Prin Amt 1,107,156.74
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 100,301.58
Accelerated Principal Payments
To Designated Certificate Holder up to Holdback 1,006,855.16
Amount
To HCLC any remaining amounts 0.00
Principal paid to the Designated Certificate 5,317.16
