<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 May 12, 2000
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
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Item 7. FINANCIAL STATEMENTS AND EXHIBITS
(c) Exhibits
99 Statement to Series 1996-2 Participants with respect to the
distribution on May 12, 2000 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, 2000 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, 2000 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.
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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 24, 2000
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EXHIBIT INDEX
Exhibit
Number Exhibit
99 Statement to Series 1996-2 Participants with respect to the
distribution on May 12, 2000 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, 2000 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, 2000 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.
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<TABLE>
<CAPTION>
Household Consumer Loan Trust, Series 1996-2
Deposit Trust Calculations
Previous Due Period Ending Mar 31, 2000
Current Due Period Ending Apr 30, 2000
Prior Distribution Date Apr 14, 2000
Distribution Date May 12, 2000
<S> <C>
Beginning Trust Principal Receivables 3,685,550,926.18
Average Principal Receivables 3,685,447,607.61
FC&A Collections (Includes Recoveries) 59,836,905.01
Principal Collections 117,469,064.43
Additional Balances 43,755,280.88
Net Principal Collections 73,713,783.55
Defaulted Amount 26,397,362.00
Miscellaneous Payments 0.00
Principal Recoveries 1,592,643.00
Beginning Participation Invested Amount 380,939,916.67
Beginning Participation Unpaid Principal 380,939,916.67
Balance
Ending Participation Invested Amount 370,592,101.29
Ending Participation Unpaid Principal Balance 370,592,101.29
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 380,939,916.67
Numerator for Fixed Allocation 391,322,895.04
Denominator - Max(Sum of Numerators, Principal 3,685,447,607.61
Receivables)
Applicable Allocation Percentage 10.3363%
Investor FC&A Collections 6,184,938.18
Series Participation Interest Default Amount
Numerator for Floating Allocation 380,939,916.67
Denominator - Max(Sum of Numerators, Principal 3,685,447,607.61
Receivables)
Floating Allocation Percentage 10.3363%
Series Participation Interest Default Amount 2,728,517.66
Principal Allocation Components
Numerator for Floating Allocation 380,939,916.67
Numerator for Fixed Allocation 391,322,895.04
Denominator - Max(Sum of Numerators, Principal 3,685,447,607.61
Receivables)
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<PAGE> 2
Series Participation Interest Monthly Interest
(a) Series Participation Interest Pass Through 7.5000%
Rate, [Max(b,c)]
(b) Prime Rate minus 1.50% 7.5000%
(c) Rate Sufficient to Cover Interest, Yield 6.1685%
and Accelerated Principal Pmt Amount
(d) Series Participation Interest Unpaid 380,939,916.67
Principal Balance
(e) Actual days in the Interest Period 28
Series Participation Monthly Interest, [a*d*e] 2,222,149.51
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, 10,347,815.38
[a+m+n]
(a) Investor Principal Collections, [Max(b,h) 7,619,297.72
or e]
(b) prior to Accelerated Amort. Date or not 7,619,297.72
Early Amort. Period, [c*d]
(c) Floating Allocation Percentage 10.3363%
(d) Net Principal Collections 73,713,783.55
(e) after Accelerated Amort Date or Early Amort 12,472,931.18
Period, [f*g]
(f) Fixed Allocation Percentage 10.6181%
(g) Collections of Principal
117,469,064.43
(h) Minimum Principal Amount, [Min(i,l)] 4,128,400.84
(i) Floating Allocation Percentage of 12,141,986.64
Principal Collections
(j) 1.8% of the Series Participation Interest 6,856,918.50
Invested Amount
(k) Series Participation Interest Net Default 2,728,517.66
Payment Amount
(l) the excess of (j) over (k) 4,128,400.84
(m) Series Participation Interest Net Default 2,728,517.66
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 6,184,938.18
[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 2,222,149.51
[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 2,728,517.66
[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)] 634,899.86
Excess [Sec. 4.11(a)(vi)] 599,371.15
Series Participation Investor Charge Off [Sec. 0.00
4.12(a)]
Seller's Interest
854,551,681.27
</TABLE>
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<TABLE>
Series 1996-2
Owner Trust Calculations
Due Period Ending Apr 30, 2000
Payment Date May 15, 2000
Calculation of Interest Expense
Index (LIBOR) 6.130000%
Accrual end date May 15, 2000
accrual beginning date Apr 17, 2000
and days in Interest Period 28
<S> <C> <C> <C> <C> <C> <C>
Class A-1 Class A-2 Class A-3 Class B Certificates Overcoll
Amount
Beginning 198,007,231 41,089,703 53,407,014 38,832,253 17,142,296 32,461,419
Unpaid
Principal
Balance
Previously 0.00 0.00 0.00 0.00 0.00
unpaid
interest/yield
Spread to 0.17% 0.32% 0.42% 0.65% 1.00%
index
Rate (capped 6.300000% 6.450000% 6.550000% 6.780000%
7.130000%
at 13%, 15%,
15%, 15%,
16%)
Interest/Yield 970,235 206,133 272,079 204,775 95,064
Payable on
the Principal
Balance
Interest on 0.00 0.00 0.00 0.00 0.00
previously
unpaid
interest/yield
Interest/Yield 970,235 206,133 272,079 204,775 95,064
Due
Interest/Yield 970,235 206,133 272,079 204,775 95,064
Paid
Summary
Beginning
Security 198,007,231 41,089,703 53,407,014 38,832,253 17,142,296 32,461,419
Balance
Beginning
Adjusted 198,007,231 41,089,703 53,407,014 38,832,253 17,142,296
Balance
Principal
Paid 5,378,701 1,116,157 1,450,743 1,054,836 465,652 961,090
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Ending
Security 192,628,530 39,973,546 51,956,271 37,777,418 16,676,645 31,579,691
Balance
Ending
Adjusted 192,628,530 39,973,546 51,956,271 37,777,418 16,676,645
Balance
Ending 4.5000%
Certificate
Balance as %
Participation
Interest
Invested
Amount
Targeted
Balance 192,707,893 39,973,546 51,956,271 37,777,418 16,676,645
Minimum
Adjusted 18,800,000 24,500,000 17,800,000 7,900,000 14,800,000
Balance
Certificate
Minimum 11,230,423
Balance
Ending OC
Amount as 26,482,968
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 $1.2219590 $3.9458909 $4.0070555 $4.1477703 $2.5772260
Paid per $1000
Principal $6.7741825 $21.3659410 $21.3658766 $21.3659226 $12.6240766
Paid per
$1000
</TABLE>
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<TABLE>
Series 1996-2 Owner Trust Calculations
Due Period April 2000
Payment Date May 15, 2000
<S> <C>
Optimum Monthly Principal [a+b+c]
(a) Available Investor Principal Collections 10,347,815.38
(b) Series Participation Interest Charge Offs 0.00
(c) Lesser of Excess Interest and Carryover 0.00
Charge offs
Accelerated Principal Payment 79,362.48
Series Participation Interest Monthly Interest 2,222,149.51
Allocation of Optimum Monthly Principal and
Series Part. Interest Monthly Interest
Interest and Yield
Pay Class A-1 Interest Distribution- Sec. 970,235.43
3.05(a)(i)(a)
Pay Class A-2 Interest Distribution- Sec. 206,133.34
3.05(a)(i)(b)
Pay Class A-3 Interest Distribution- Sec. 272,079.07
3.05(a)(i)(c)
Pay Class B Interest Distribution- Sec. 204,775.42
3.05(a)(i)(d)
Pay Certificates the Certificate Yield- Sec. 95,063.56
3.05(a)(i)(e)
Principal up to Optimum Monthly Principal
Balance
Pay Class A-1 to Targeted Principal Balance- 5,299,338.40
Sec. 3.05(a)(ii)(a)
Pay Class A-2 to Targeted Principal Balance 1,116,156.76
subject to Min Adj Bal- Sec. 3.05(a)(ii)(b)
Pay Class A-3 to Targeted Principal Balance 1,450,743.02
subject to Min Adj Bal- Sec. 3.05(a)(ii)(c)
Pay Class B to Targeted Principal Balance 1,054,835.60
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 465,651.69
subject to Min Adj Bal- Sec. 3.05(a)(iii)
Pay OC Remaining Optimal Monthly Prin Amt 961,089.91
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) 79,362.48
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)
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Remaining Amounts to Holder of Designated 394,500.21
Certificate - Sec. 3.05(a)(vii)
Allocations of Distributions to
Overcollateralization Amount
Available Distributions
Pay OC Remaining Optimal Monthly Prin Amt 961,089.91
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 79,362.48
Accelerated Principal Payments
To Designated Certificate Holder up to Holdback 881,727.43
Amount
To HCLC any remaining amounts 0.00
Principal paid to the Designated Certificate 4,656.52
</TABLE>
