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 October 15, 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 October 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
October 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 October 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> 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: October 25, 1999
-3-
Current Due Period Ending Sep 30, 1999
Prior Distribution Date Sep 14, 1999
Distribution Date <PAGE> 1
<TABLE>
<CAPTION>
Household Consumer Loan Trust, Series 1996-2
Deposit Trust Calculations
Previous Due Period Ending Aug 31, 1999
Current Due Period Ending Sep 30, 1999
Prior Distribution Date Sep 14, 1999
Distribution Date Oct 14, 1999
<S> <C>
Beginning Trust Principal Receivables 4,105,108,365.72
Average Principal Receivables 4,104,937,835.45
FC&A Collections (Includes Recoveries) 64,771,302.74
Principal Collections 134,834,398.30
Additional Balances 58,382,153.83
Net Principal Collections 76,452,244.47
Defaulted Amount 33,144,878.15
Miscellaneous Payments 0.00
Principal Recoveries 1,736,151.00
Beginning Participation Invested Amount 455,338,341.57
Beginning Participation Unpaid Principal 455,338,341.57
Balance
Ending Participation Invested Amount 443,181,331.14
Ending Participation Unpaid Principal Balance 443,181,331.14
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 455,338,341.57
Numerator for Fixed Allocation 469,631,695.69
Denominator - Max(Sum of Numerators, Principal 4,104,937,835.45
Receivables)
Applicable Allocation Percentage 11.0925%
Investor FC&A Collections 7,184,726.97
Series Participation Interest Default Amount
Numerator for Floating Allocation 455,338,341.57
Denominator - Max(Sum of Numerators, Principal 4,104,937,835.45
Receivables)
Floating Allocation Percentage 11.0925%
Series Participation Interest Default Amount 3,676,580.37
Principal Allocation Components
Numerator for Floating Allocation 455,338,341.57
Numerator for Fixed Allocation 469,631,695.69
Denominator - Max(Sum of Numerators, Principal 4,104,937,835.45
Receivables)
Series Participation Interest Monthly Interest
(a) Series Participation Interest Pass Through 6.7500%
Rate, [Max(b,c)]
(b) Prime Rate minus 1.50% 6.7500%
(c) Rate Sufficient to Cover Interest, Yield 5.4646%
and Accelerated Principal Pmt Amount
(d) Series Participation Interest Unpaid 455,338,341.57
Principal Balance
(e) Actual days in the Interest Period 30
Series Participation Monthly Interest, [a*d*e] 2,561,278.17
Series Participation Interest Interest 0.00
Shortfall
Previous Series Participation Interest 0.00
Interest Shortfall
Additional Interest 0.00
Series Participation Interest Monthly
Principal
Available Investor Principal Collections, 12,157,010.43
[a+m+n]
(a) Investor Principal Collections, [Max(b,h) 8,480,430.06
or e]
(b) prior to Accelerated Amort. Date or not 8,480,430.06
Early Amort. Period, [c*d]
(c) Floating Allocation Percentage 11.0925%
(d) Net Principal Collections 76,452,244.47
(e) after Accelerated Amort Date or Early 15,425,935.70
Amort Period, [f*g]
(f) Fixed Allocation Percentage 11.4407%
(g) Collections of Principal
134,834,398.30
(h) Minimum Principal Amount, [Min(i,l)] 4,519,509.78
(i) Floating Allocation Percentage of 14,956,443.62
Principal Collections
(j) 1.8% of the Series Participation Interest 8,196,090.15
Invested Amount
(k) Series Participation Interest Net Default 3,676,580.37
Payment Amount
(l) the excess of (j) over (k) 4,519,509.78
(m) Series Participation Interest Net Default 3,676,580.37
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. 7,184,726.97
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 2,561,278.17
[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 3,676,580.37
[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)] 758,897.24
Excess [Sec. 4.11(a)(vi)] 187,971.19
Series Participation Investor Charge Off [Sec. 0.00
4.12(a)]
</TABLE>
<TABLE>
<CAPTION>
Series 1996-2
Owner Trust
Calculations
Due Period Sep 30,
Ending 1999
Payment Date Oct 15,
1999
Calculation of
Interest
Expense
<S> <C> <C> <C> <C> <C> <C>
Index (LIBOR) 5.380000%
Accrual end Oct 15, Sep 15, 30
date, accrual 1999 1999
beginning date
and days in
Interest Period
Class A-1 Class A-2 Class A-3 Class B Certificate Overcoll
s Amount
Beginning 236,678,098 49,114,615 63,837,525 46,416,280 20,490,225 38,801,599
Unpaid
Principal
Balance
Previously 0.00 0.00 0.00 0.00 0.00
unpaid
interest/yield
Spread to index 0.17% 0.32% 0.42% 0.65% 1.00%
Rate (capped at 5.550000% 5.700000% 5.800000% 6.030000% 6.380000%
13%, 15%, 15%,
15%, 16%)
Interest/Yield 1,094,636 233,294 308,548 233,242 108,940
Payable on the
Principal
Balance
Interest on 0.00 0.00 0.00 0.00 0.00
previously
unpaid
interest/yield
Interest/Yield 1,094,636 233,294 308,548 233,242 108,940
Due
Interest/Yield 1,094,636 233,294 308,548 233,242 108,940
Paid
Summary
Beginning
Security 236,678,098 49,114,615 63,837,525 46,416,280 20,490,225 38,801,599
Balance
Beginning
Adjusted 236,678,098 49,114,615 63,837,525 46,416,280 20,490,225
Balance
Principal Paid
6,318,668 1,311,304 1,704,389 1,239,261 547,065 1,131,186
Ending Security
Balance 230,359,430 47,803,311 62,133,136 45,177,019 19,943,160 37,765,275
Ending Adjusted
Balance 230,359,430 47,803,311 62,133,136 45,177,019 19,943,160
Ending 4.5000%
Certificate
Balance as %
Participation
Interest
Invested Amount
Targeted
Balance 230,454,292 47,803,311 62,133,136 45,177,019 19,943,160
Minimum
Adjusted 18,800,000 24,500,000 17,800,000 7,900,000 14,800,000
Balance
Certificate
Minimum Balance 13,430,167
Ending OC
Amount as 32,668,552
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/Yield $1.3786350 $4.4658197 $4.5441538 $4.7243632 $2.9534159
Paid per $1000
Principal Paid $7.9580197 $25.1015270 $25.1014513 $25.1015056 $14.8312495
per $1000
</TABLE>
<PAGE> 5
<TABLE>
<CAPTION>
Series 1996-2 Owner Trust Calculations
Due Period September 1999
Payment Date Oct 15, 1999
<S> <C>
Optimum Monthly Principal [a+b+c]
(a) Available Investor Principal Collections 12,157,010.43
(b) Series Participation Interest Charge Offs 0.00
(c) Lesser of Excess Interest and Carryover 0.00
Charge offs
Accelerated Principal Payment 94,862.15
Series Participation Interest Monthly Interest 2,561,278.17
Allocation of Optimum Monthly Principal and
Series Part. Interest Monthly Interest
Interest and Yield
Pay Class A-1 Interest Distribution- Sec. 1,094,636.20
3.05(a)(i)(a)
Pay Class A-2 Interest Distribution- Sec. 233,294.42
3.05(a)(i)(b)
Pay Class A-3 Interest Distribution- Sec. 308,548.04
3.05(a)(i)(c)
Pay Class B Interest Distribution- Sec. 233,241.81
3.05(a)(i)(d)
Pay Certificates the Certificate Yield- Sec. 108,939.70
3.05(a)(i)(e)
Principal up to Optimum Monthly Principal
Balance
Pay Class A-1 to Targeted Principal Balance- 6,223,805.49
Sec. 3.05(a)(ii)(a)
Pay Class A-2 to Targeted Principal Balance 1,311,303.77
subject to Min Adj Bal- Sec. 3.05(a)(ii)(b)
Pay Class A-3 to Targeted Principal Balance 1,704,388.54
subject to Min Adj Bal- Sec. 3.05(a)(ii)(c)
Pay Class B to Targeted Principal Balance 1,239,261.33
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 547,065.47
subject to Min Adj Bal- Sec. 3.05(a)(iii)
Pay OC Remaining Optimal Monthly Prin Amt 1,131,185.83
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) 94,862.15
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 487,755.85
Certificate - Sec. 3.05(a)(vii)
Allocations of Distributions to
Overcollateralization Amount
Available Distributions
Pay OC Remaining Optimal Monthly Prin Amt 1,131,185.83
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 94,862.15
Accelerated Principal Payments
To Designated Certificate Holder up to Holdback 1,036,323.68
Amount
To HCLC any remaining amounts 0.00
Principal paid to the Designated Certificate 5,470.65
</TABLE>
