<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 January 14, 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 January 14, 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
January 18, 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 January 18, 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: January 19, 2000
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EXHIBIT INDEX
Exhibit
Number Exhibit Page
5
99 Statement to Series 1996-2 Participants with respect to the
distribution on January 14, 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
January 18, 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 January 18, 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 Nov 30, 1999
Current Due Period Ending Dec 31, 1999
Prior Distribution Date Dec 14, 1999
Distribution Date Jan 14, 2000
<S> <C>
Beginning Trust Principal Receivables 4,065,059,019.44
Average Principal Receivables 4,064,874,379.69
FC&A Collections (Includes Recoveries) 65,094,498.75
Principal Collections 119,569,970.57
Additional Balances 55,610,268.46
Net Principal Collections 63,959,702.11
Defaulted Amount 29,718,113.69
Miscellaneous Payments 0.00
Principal Recoveries 3,449,491.00
Beginning Participation Invested Amount 420,227,822.44
Beginning Participation Unpaid Principal 420,227,822.44
Balance
Ending Participation Invested Amount 410,543,384.29
Ending Participation Unpaid Principal 410,543,384.29
Balance
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 0
OC Average >or=4.25%)
Investor Finance Charges and Administrative
Collections
Numerator for Floating Allocation 420,227,822.44
Numerator for Fixed Allocation 431,838,321.94
Denominator - Max(Sum of Numerators, 4,064,874,379.69
Principal Receivables)
Applicable Allocation Percentage 10.3380%
Investor FC&A Collections 6,729,487.04
Series Participation Interest Default
Amount
Numerator for Floating Allocation 420,227,822.44
Denominator - Max(Sum of Numerators, 4,064,874,379.69
Principal Receivables)
Floating Allocation Percentage 10.3380%
Series Participation Interest Default 3,072,266.70
Amount
Principal Allocation Components
Numerator for Floating Allocation 420,227,822.44
Numerator for Fixed Allocation 431,838,321.94
Denominator - Max(Sum of Numerators, 4,064,874,379.69
Principal Receivables)
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<PAGE> 2
Series Participation Interest Monthly
Interest
(a) Series Participation Interest Pass 7.0472%
Through Rate, [Max(b,c)]
(b) Prime Rate minus 1.50% 7.0000%
(c) Rate Sufficient to Cover Interest, 7.0472%
Yield and Accelerated Principal Pmt Amount
(d) Series Participation Interest Unpaid 420,227,822.44
Principal Balance
(e) Actual days in the Interest Period 31
Series Participation Monthly Interest, 2,550,130.52
[a*d*e]
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, 9,684,438.15
[a+m+n]
(a) Investor Principal Collections, 6,612,171.45
[Max(b,h) or e]
(b) prior to Accelerated Amort. Date or not 6,612,171.45
Early Amort. Period, [c*d]
(c) Floating Allocation Percentage 10.3380%
(d) Net Principal Collections 63,959,702.11
(e) after Accelerated Amort Date or Early 12,702,703.85
Amort Period, [f*g]
(f) Fixed Allocation Percentage 10.6237%
(g) Collections of Principal
119,569,970.57
(h) Minimum Principal Amount, [Min(i,l)] 4,491,834.10
(i) Floating Allocation Percentage of 12,361,176.18
Principal Collections
(j) 1.8% of the Series Participation 7,564,100.80
Interest Invested Amount
(k) Series Participation Interest Net 3,072,266.70
Default Payment Amount
(l) the excess of (j) over (k) 4,491,834.10
(m) Series Participation Interest Net 3,072,266.70
Default 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. 6,729,487.04
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 0.00
other than HFC
Series Participation Interest Monthly 2,550,130.52
Interest [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 3,072,266.70
Amount [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)] 700,379.70
Excess [Sec. 4.11(a)(vi)] 406,710.12
Series Participation Investor Charge Off 0.00
[Sec. 4.12(a)]
Seller's Interest
914,467,191.98
Seller's Interest Percentage 23.03%
</TABLE>
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<TABLE>
Series 1996-2 Owner Trust Calculations
Due Period Ending Dec 31, 1999
Payment Date Jan 18, 2000
Calculation of Interest Expense
Index (LIBOR) 6.462500%
Accrual end date, Jan 18, 2000
accrual beginning date Dec 15, 1999
and days in Interest Period 34
<S> <C> <C> <C> <C> <C> <C>
Class A-1 Class A-2 Class A-3 Class B Certificate Overcoll
Amount
Beginning 218,428,501 45,327,454 58,915,100 42,837,184 18,910,252 35,809,331
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 6.632500% 6.782500% 6.882500% 7.112500% 7.462500%
at 13%, 15%,
15%, 15%, 16%)
Interest/Yield 1,368,242 290,354 382,956 287,753 133,278
Payable on the
Principal
Balance
Interest on 0.00 0.00 0.00 0.00 0.00
previously
unpaid
interest/yield
Interest/Yield 1,368,242 290,354 382,956 287,753 133,278
Due
Interest/Yield 1,368,242 290,354 382,956 287,753 133,278
Paid
Summary
Beginning 218,428,501 45,327,454 58,915,100 42,837,184 18,910,252 35,809,331
Security
Balance
Beginning 218,428,501 45,327,454 58,915,100 42,837,184 18,910,252
Adjusted
Balance
Principal Paid 5,033,489 1,044,602 1,357,739 987,212 435,800 913,144
Ending 213,395,012 44,282,852 57,557,361 41,849,972 18,474,452 34,983,735
Security
Balance
Ending 213,395,012 44,282,852 57,557,361 41,849,972 18,474,452
Adjusted
Balance
Ending 4.5000%
Certificate
Balance as %
Participation
Interest
Invested Amount
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Targeted
Balance 213,482,560 44,282,852 57,557,361 41,849,972 18,474,452
Minimum
Adjusted 18,800,000 24,500,000 17,800,000 7,900,000 14,800,000
Balance
Certificate
Minimum 12,441,107
Balance
Ending OC
Amount as 29,887,012
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 $1.7232270 $5.5580747 $5.6400049 $5.8284956 $3.6132375
Paid per $1000
Principal Paid $6.3394068 $19.9962144 $19.9961541 $19.9961971 $11.8147731
per $1000
</TABLE>
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<TABLE>
Series 1996-2 Owner Trust Calculations
Due Period December 1999
Payment Date Jan 18, 2000
<S> <C>
Optimum Monthly Principal [a+b+c]
(a) Available Investor Principal Collections 9,684,438.15
(b) Series Participation Interest Charge Offs 0.00
(c) Lesser of Excess Interest and Carryover 0.00
Charge offs
Accelerated Principal Payment 87,547.46
Series Participation Interest Monthly Interest 2,550,130.52
Allocation of Optimum Monthly Principal and
Series Part. Interest Monthly Interest
Interest and Yield
Pay Class A-1 Interest Distribution- Sec. 1,368,242.20
3.05(a)(i)(a)
Pay Class A-2 Interest Distribution- Sec. 290,353.82
3.05(a)(i)(b)
Pay Class A-3 Interest Distribution- Sec. 382,956.33
3.05(a)(i)(c)
Pay Class B Interest Distribution- Sec. 287,752.83
3.05(a)(i)(d)
Pay Certificates the Certificate Yield- Sec. 133,277.88
3.05(a)(i)(e)
Principal up to Optimum Monthly Principal
Balance
Pay Class A-1 to Targeted Principal Balance- 4,945,941.52
Sec. 3.05(a)(ii)(a)
Pay Class A-2 to Targeted Principal Balance 1,044,602.24
subject to Min Adj Bal- Sec. 3.05(a)(ii)(b)
Pay Class A-3 to Targeted Principal Balance 1,357,738.86
subject to Min Adj Bal- Sec. 3.05(a)(ii)(c)
Pay Class B to Targeted Principal Balance 987,212.25
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 435,799.72
subject to Min Adj Bal- Sec. 3.05(a)(iii)
Pay OC Remaining Optimal Monthly Prin Amt 913,143.56
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) 87,547.46
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 (0.00)
Certificate - Sec. 3.05(a)(vii)
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Allocations of Distributions to
Overcollateralization Amount
Available Distributions
Pay OC Remaining Optimal Monthly Prin Amt 913,143.56
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 87,547.46
Accelerated Principal Payments
To Designated Certificate Holder up to Holdback 825,596.10
Amount
To HCLC any remaining amounts 0.00
Principal paid to the Designated Certificate 4,358.00
</TABLE>
