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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-K
(Mark One)
[X] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended December 31, 1999
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from ______ to _______
Commission File No. 0-21971
REVOLVING HOME EQUITY LOAN TRUST 1996-2
(Exact name of Registrant as specified in Department
of the Treasury, Internal Revenue Service Form SS-4)
HOUSEHOLD FINANCE CORPORATION
(Master Servicer of the Trust)
(Exact name as specified in Master Servicer's charter)
DELAWARE 36-3670374
(State or other jurisdiction of (I.R.S. Employer Identification
incorporation of Master Servicer) Number of Registrant)
2700 SANDERS ROAD, PROSPECT HEIGHTS, ILLINOIS 60070
(Address of principal executive offices of Master (Zip Code)
Servicer)
Master Servicer's telephone number, including (847) 564-5000
area code
Indicate by check mark whether the Registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding 12 months (or
for such shorter period that the Registrant was required to file
such reports), and (2) has been subject to such filing requirements
for the past 90 days.
Yes X No
The aggregate principal amount of the Certificates held by non-
affiliates of the Master Servicer as of December 31, 1999 was
approximately $776.4 million.
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INTRODUCTORY NOTE
HFC Revolving Corporation, as seller (the "Seller") under a
Pooling and Servicing Agreement (the "Agreement") dated as of
November 1, 1996, by and among the Seller, Household Finance
Corporation, as Master Servicer (the "Master Servicer") and The
First National Bank of Chicago, as trustee (the "Trustee")
providing for the issuance of Revolving Home Equity Loan Asset
Backed Certificates, Series 1996-2 (the "Certificates") and are
originators of the trust called the Revolving Home Equity Loan
Trust 1996-2 (the "Registrant" or the "Trust").
Each Certificate represents an undivided interest in the
Trust. The Certificates consist of one class of certificates (the
"Class A Certificates"). Payment of principal and interest to the
holders of the Certificates is supported by a $450 million
principal and interest surety bond issued by Capital Markets
Assurance Corporation. This Form 10-K has been prepared with
reduced disclosure in accordance with past exemptions from
reporting requirements granted by the Securities and Exchange
Commission (the "Commission") under Section 13 of the Securities
Exchange Act of 1934 (the "Act") received by the Master Servicer
for trusts substantially similar to the Trust. Items designated
herein as "Not Applicable" have been specifically omitted in
reliance on such prior exemptions.
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PART I
Item 1. Business.
Not Applicable.
Item 2. Properties.
Not Applicable.
Item 3. Legal Proceedings.
The Master Servicer is not aware of any material pending
legal proceedings involving either the Registrant, the
Trustee, the Sellers or the Master Servicer with respect
to the Certificates or the Registrant's property.
Item 4. Submission of Matters to a Vote of Security Holders.
No vote or consent of the holders of the Certificates
(the "Certificateholders") was solicited for any purpose
during the year ended December 31, 1999.
PART II
Item 5. Market for Registrant's Common Equity and Related
Stockholder Matters.
To the best knowledge of the Master Servicer, there is no
established public trading market for the Certificates.
As of March 1, 2000, there were 14 Class A
Certificateholders, some of whom may be holding
Certificates for the accounts of others.
Item 6. Selected Financial Data.
Not Applicable.
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Item 7. Management's Discussion and Analysis of Financial
Condition and Results of Operations.
Not Applicable.
Item 8. Financial Statements and Supplementary Data.
Not Applicable.
Item 9. Changes in and Disagreements with Accountants on
Accounting and Financial Disclosure.
None.
PART III
Item 10. Directors and Executive Officers of the Registrant.
Not Applicable.
Item 11. Executive Compensation.
Not Applicable.
Item 12. Security Ownership of Certain Beneficial Owners and
Management.
The following table sets forth (i) the name and address
of each entity owning more than 5% of the outstanding
principal amount of the Class A Certificates; (ii) the
principal amount of Certificates owned by each, if known,
and (iii) the percent that the principal amount of
Certificates owned represents of the outstanding
principal amount of the Class A Certificates. The
information set forth in the table is based upon
information obtained by the Master Servicer from the
Trustee and from The Depository Trust Company as of March
1, 2000. The Master Servicer is not aware of any
Schedules 13D or 13G filed with the Securities and
Exchange Commission in respect of the Certificates.
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Amount Owned
All dollar amounts are
in thousands
Name and Address Principal Percent
Certificateholders
Bank of New York $168,673 21.73%
925 Patterson Plank Road
Secaucus, NJ 07094
Bankers Trust Company $ 52,900 6.81%
c/o BT Services Tennessee Inc.
648 Grassmere Park Drive
Nashville, TN 37211
The Bank of New York/CDC-FP $ 81,500 10.50%
One Wall Street - 8th Floor
New York, NY 10286
Boston Safe Deposit and Trust Co. $ 81,000 10.43%
c/o Mellon Bank N.A.
Three Mellon Bank Center, Room 153-3015
Pissburgh, PA 15259
Chase Manhattan Bank $115,000 14.81%
4 New York Plaza - 13th Floor
New York, NY 10004
Norwest Bank Minnesota, $ 56,100 7.23%
National Association
733 Marquette Avenue
Minneapolis, MN 55479-0056
Northern Trust Company $ 69,500 8.95%
801 S. Canal C-IN
Chicago, IL 60607
State Street Bank & Trust Co. $ 91,900 11.84%
Global Corp. Action Dept. JAB5W
1776 Heritage Drive
NO. Quincy, MA 02171
Item 13. Certain Relationships and Related Transactions.
None or Not Applicable.
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PART IV
Item 14. Exhibits, Financial Statement Schedules, and Reports on
Form 8-K.
(a) List the following documents filed as a part of the
report:
(1) Financial Statements
Not Applicable.
(2) Financial Statement Schedules
Not Applicable.
(3) The Master Servicer is obligated to prepare an
Annual Statement to Certificateholders for the
year ended December 31, 1999 and the
Independent Public Accountants are required to
prepare an Annual Servicing Report pertaining
to the compliance of the Master Servicer with
its servicing obligations pursuant to the
Agreement for such year. Copies of said
documents are or will be filed as exhibits to
this Form 10-K when they are available.
(b) The Registrant filed the following current reports
on Form 8-K for the fourth quarter of 1999:
Date of Reports Items Covered
October 20, 1999 Item 7 -- Statement with respect
November 22, 1999 to distributions made on
December 20, 1999 October 20, 1999, November 22,
1999 and December 20, 1999.
(c) Exhibit 99. Annual Statement to Certificateholders
for the year ended December 31, 1999.
(d) Not Applicable.
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SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the
Securities Exchange Act of 1934, the Master Servicer has duly
caused this report to be signed on behalf of the Revolving Home
Equity Loan Trust 1996-2 by the undersigned, thereunto duly
authorized.
HOUSEHOLD FINANCE CORPORATION,
as Master Servicer of and on behalf of the
REVOLVING HOME EQUITY LOAN TRUST 1996-2
(Registrant)
Date: March 30, 2000 By:/s/ John W. Blenke
John W. Blenke
Assistant Secretary
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Exhibit Index
Exhibit No. Exhibit
99 Annual Statement to Certificateholders
for the year ended December 31, 1999
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<TABLE>
<CAPTION>
Household Finance Corporation
Household Revolving Home Equity Loan Trust 1996-2
Revolving Home Equity Loan Asset Backed
Certificates - Series 1996-2
P & S Agreement Date: November 1, 1996
Original Settlement Date: November 26, 1996
Series Number of Class A-1 Certificates: 441919AK3
Original Sale Balance: $776,373,000
Sum of 1/20/99 - 12/21/99
1999 AGGREGATE PAYMENTS Distribution Dates
Distribution Date Total 1999 (1)
<S> <C>
Class A-1 Interest Distributed 17,704,526.71
Investor Principal Distribution A-1 150,219,496.75
(1) These amounts represent cash distributions
paid by the trust during the 1999 calendar
year.
As such, they do not represent the
economic accrual of interest for tax purposes.
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