FORM 8-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report: July 14, 1997
HOUSEHOLD CONSUMER LOAN TRUST 1997-1
------------------------------------
(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 333-20147 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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Exhibit Index appears on page 3
<PAGE>
Item 7. FINANCIAL STATEMENTS AND EXHIBITS
(c) Exhibits
--------
99 Statement to Series 1997-1 Participants with respect to the
distribution on July 14, 1997 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 1997-1 Supplement to the Pooling and Servicing
Agreement, (b) Noteholders with respect to the Payment Date on
July 15, 1997 as provided for under Section 3.23 of the
Indenture dated as of March 1, 1997 between Household Consumer
Loan Trust 1997-1 and The Bank of New York, as Indenture
Trustee, and (c) Certificateholders with respect to the
Payment Date on July 15, 1997 as provided for under Section
5.04 of the Trust Agreement dated as of March 1, 1997 between
Household Consumer Loan Corporation and The Chase Manhattan
Bank Delaware, as Owner Trustee.
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 1997-1
----------------------------------------
(Registrant)
By: /s/ J. W. Blenke
-----------------------------------
J. W. Blenke
Authorized Representative
Dated: July 28, 1997
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- 2 - <PAGE>
EXHIBIT INDEX
Exhibit
Number Exhibit Page
- ------- ------- ----
5
99 Statement to Series 1997-1 Participants with respect to the
distribution on July 14, 1997 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 1997-1 Supplement to the Pooling and Servicing
Agreement, (b) Noteholders with respect to the Payment Date on
July 15, 1997 as provided for under Section 3.23 of the
Indenture dated as of March 1, 1997 between Household Consumer
Loan Trust 1997-1 and The Bank of New York, as Indenture
Trustee, and (c) Certificateholders with respect to the
Payment Date on July 15, 1997 as provided for under Section
5.04 of the Trust Agreement dated as of March 1, 1997 between
Household Consumer Loan Corporation and The Chase Manhattan
Bank Delaware, as Owner Trustee.
U:\WP\HFS088\8K\HCLT97-1.8K
- 3 -
Household Finance Corporation
Household Consumer Loan Corporation
Household Consumer Loan Trust Series 1997-1
No. of PMTs Since Issuance: 4
Distribution Date: 14-Jul-97
Payment Date: 15-Jul-97
Collection Period Beginning: 01-Jun-97
Collection Period Ending: 30-Jun-97
Note and Certificate Accrual Beginning: 16-Jun-97
Note and Certificate Accrual Ending: 15-Jul-97
PAYMENT CALCULATIONS:
OC Balance as % of Beginning Participation Invested Amount 4.74%
OC Balance as % of Ending Participation Invested Amount 4.91%
OC Balance as % of Ending Participation Invested Amount (3 month avg 4.57%
Does Early Amortization Start Based on OC/Part. Invstd. Amt. Test 0.00
Is the MAP Over? 0.00
Is this the Early Amortization Period? 0.00
Interest Allocation Percentage Calculation:
Numerator 898,023,697.92
Denominator-Component(x)-Aggregate Receivables & Partc. Int. 3,383,410,656.15
Denominator - Component (y) - Aggregate Numerators 3,084,861,416.96
Applicable Interest Allocation Percentage 26.54%
Principal Allocation Percentage Calculation:
Numerator 898,023,697.92
Denominator-Component(x)-Aggregate Receivables & Partc. Int. 3,383,410,656.15
Denominator - Component (y) - Aggregate Numerators 3,084,861,416.96
Applicable Principal Allocation Percentage 26.54%
Default Allocation Percentage Calculation:
Numerator 898,023,697.92
Denominator-Component(x)-Aggregate Receivables & Partc. Int. 3,383,410,656.15
Denominator - Component (y) - Aggregate Numerators 3,084,861,416.96
Default Allocation Percentage (Floating Allocation Percentage) 26.54%
Minimum Principal Amount Calculation:
2.2% of Participation Invested Amount 19,756,521.35
Series Participation Interest Default Amount (Sec.4.11(a)(iii)) 6,717,865.24
Excess of (i)2.2% of Part. Inv. Amt. over (ii)Series Part. Int. 13,038,656.12
Minimum Principal Amount 13,038,656.12
Investor Principal Collections 13,038,656.12
Investor Finance Charge and Admin. Collections (4.11a) 14,751,558.71
Investor Allocated Defaulted Amounts 6,717,865.24
DEPOSIT TRUST CALCULATIONS
Beginning Participation Unpaid Principal Balance 898,023,697.92
Beginning Participation Invested Amount 898,023,697.92
Ending Participation Unpaid Principal Balance 878,267,176.57
Ending Participation Invested Amount 878,267,176.57
Beginning Participation Unpaid Principal Balance x (PRIME-1.50%) 5,413,087.29
Note Interest & Cert Yield Amounts Due Pursuant to Sec. 3.05 4,064,638.98
Participation Invested Amountx75bps per annum prior to 4/98, 25bps 561,264.81
Participation Interest Distribution Amount 5,413,087.29
Application of Investor Finance Charges & Administrative Collections:
Investor Finance Charge and Admin. Collections (4.11a) 14,751,558.71
Servicing Fee if HFC is not the Servicer (Sec. 4.11 (a)(i) 0.00
Series Participation Interest Monthly Interest (Sec.4.11(a)(ii)) 5,413,087.29
Series Participation Interest Default Amount (Sec.4.11(a)(iii)) 6,717,865.24
Reimbursed Series Particpation Interest Charge-Offs (Sec.4.11(a)(i 0.00
Servicing Fee if HFC is the Servicer (Sec. 4.11 (a)(v)) 1,496,706.16
Excess (Sec. 4.11 (a)(vi)) 1,123,900.02
Reconciliation Check 0.00
Series Participation Interest Monthly Principal 19,756,521.35
Beginning Unreimbursed Participation Interest Charge-Offs 0.00
Series Participation Interest Charge-Offs (Sec. 4.12 (a)) 0.00
Reimbursed Series Particpation Interest Charge-Offs (Sec.4.11(a)(i 0.00
Ending Unreimbursed Participation Interest Charge-Offs 0.00
Available Investor Principal Collections 19,756,521.35
Participation Interest Distribution Amount 5,413,087.29
Series Participation Interest Charge-Offs 0.00
OWNER TRUST CALCULATIONS
Note Interest & Cert Yield Amounts Due Pursuant to Sec. 3.05 4,064,638.98
Excess Interest 1,348,448.31
Beginning Net Charge-Offs 0.00
Reversals 0.00
+Available Investor Principal Collections 19,756,521.35
+Series Participation Interest Charge Offs 0.00
+ Lesser of Excess Interest and Carryover Charge Offs 0.00
Optimum Monthly Principal 19,756,521.35
Are the Notes Retired ? 0.00
Accelerated Principal Payment 561,264.81
Beginning Class A-1 Security Balance 665,863,007.52
Beginning Class A-2 Security Balance 48,000,000.00
Beginning Class A-3 Security Balance 62,400,000.00
Beginning Class B Security Balance 45,600,000.00
Beginning Certificate Security Balance 33,600,000.00
Beginning Overcollateralization Amount plus APP 43,121,955.21
Beginning Class A-1 Adjusted Balance 665,863,007.52
Beginning Class A-2 Adjusted Balance 48,000,000.00
Beginning Class A-3 Adjusted Balance 62,400,000.00
Beginning Class B Adjusted Balance 45,600,000.00
Beginning Certficate Adjusted Balance 33,600,000.00
Beginning Overcollateralization Amount plus APP 43,121,955.21
Class A-1 Bal After Payment pursuant to clause in Sec3.05(a)(ii 646,106,486.17
Class A-2 Bal After Payment pursuant to clause in Sec3.05(a)(ii 48,000,000.00
Class A-3 Bal After Payment pursuant to clause in Sec3.05(a)(ii 62,400,000.00
Class B Bal After Payment pursuant to clause in Sec3.05(a)(ii)( 45,600,000.00
Certificate Bal After Payment pursuant to clause in Sec.3.05(a)( 33,600,000.00
Class A-2 Minimum Adjusted Principal Balance 16,000,000.00
Class A-3 Minimum Adjusted Principal Balance 20,800,000.00
Class B Minimum Adjusted Principal Balance 15,200,000.00
Certificate Minimum Adjusted Principal Balance 11,200,000.00
Minimum Overcollateralization Amount 13,600,000.00
Certificate Minimum Balance Target 8,871,376.75
Scheduled Certificate Payment to Cert Minimum Balance Target 24,728,623.25
Class A-1 Targeted Balance 456,698,931.81
Class A-2 Targeted Balance (101,580,836.69)
Class A-3 Targeted Balance (35,406,103.74)
Class B Targeted Balance (14,370,721.97)
Certificate Targeted Balance 1,507,980.39
Class A-1: Payment Required to get to Target 209,164,075.71
Class A-2: Payment Required to get to Target or Minimum Adj Bal 32,000,000.00
Class A-3: Payment Required to get to Target or Minimum Adj Bal 41,600,000.00
Class B: Payment Required to get to Target or Minimum Adj Bal 30,400,000.00
Certificate: Payment Required to get to Target or Minimum Adj Ba 22,400,000.00
OC: Payment to get to Minimum Overcollateralization Amount 29,521,955.21
Section 3.05 Payment of Principal and Interest; Defaulted Interest 0.00
Pay Certificate Yield in step (ii) (1= Yes) 1.00
Remittances on the Participation 25,169,608.64
Interest and Yield
(i)Pay Class A-1 Interest Distribution - Sec. 3.05 (a)(i)(a) 3,117,764.81
Pay Class A-2 Interest Distribution - Sec. 3.05 (a)(i)(b) 229,583.33
Pay Class A-3 Interest Distribution - Sec. 3.05 (a)(i)(c) 303,485.00
Pay Class B Interest Distribution - Sec. 3.05 (a)(i)(d) 232,797.50
Pay Certificates the Certificate Yield - Sec. 3.05 (a)(i)(e) 181,008.33
Principal up to Optimum Monthly Principal
(ii)Pay Class A-1 to Targeted Principal Balance-Sec.3.05(a)(i 19,756,521.35
Pay Class A-2 to Targeted Principal Balance - Sec.3.05(a)(i 0.00
Pay Class A-3 to Targeted Principal Balance - Sec.3.05(a)(i 0.00
Pay Class B to Targeted Principal Balance - Sec.3.05(a)(ii) 0.00
ONLY Pay CertificateYield if not paid pursuant to Sec.3.05 ( 0.00
Principal up to Optimal Monthly Principal
(iii)Pay Certificate to Targeted Principal Balance - Sec. 3.05 (a) 0.00
(iv)Pay OC Remaining Optimal Monthly Principal Amount - Sec. 3.05 ( 0.00
Principal up to the Accelerated Principal Payment Amount
(v)Pay Class A-1 to Targeted Principal Balance - Sec. 3.05 (a)(v)( 561,264.81
Pay Class A-2 to Targeted Principal Balance - Sec. 3.05 (a)(v 0.00
Pay Class A-3 to Targeted Principal Balance - Sec. 3.05 (a)(v 0.00
Pay Class B to Targeted Principal Balance - Sec. 3.05 (a)(v)( 0.00
Pay Class A-1 to zero - Sec. 3.05 (a)(v)(e) 0.00
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
(vi)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 Min. Bal. or zero - Sec. 3 0.00
Pay HCLC Optimum Monthly Principal provided OC > zero - Sec. 0.00
(vii) Remaining Amounts to HCLC - Sec. 3.05 (a)(vii) 787,183.50
Total Reconciliation Check 0.00
Accelerated Principal Reconciliation 0.00
Optimum Monthly Principal Reconciliation (should equal charge- 0.00
BOND SUMMARY:
Beginning Class A-1 Note Security Balance 665,863,007.52
Beginning Class A-2 Note Security Balance 48,000,000.00
Beginning Class A-3 Note Security Balance 62,400,000.00
Beginning Class B Note Security Balance 45,600,000.00
Beginning Certificate Security Balance 33,600,000.00
Beginning Overcollateralization Amount 42,560,690.40
Beginning Class A-1 Adjusted Balance 665,863,007.52
Beginning Class A-2 Adjusted Balance 48,000,000.00
Beginning Class A-3 Adjusted Balance 62,400,000.00
Beginning Class B Adjusted Balance 45,600,000.00
Beginning Certficate Adjusted Balance 33,600,000.00
Beginning Overcollateralization Amount 42,560,690.40
Ending Class A-1 Note Security Balance 645,545,221.35
Ending Class A-2 Note Security Balance 48,000,000.00
Ending Class A-3 Note Security Balance 62,400,000.00
Ending Class B Note Security Balance 45,600,000.00
Ending Certificate Security Balance 33,600,000.00
Ending Overcollateralization Amount 43,121,955.21
Ending Class A-1 Adjusted Balance 645,545,221.35
Ending Class A-2 Adjusted Balance 48,000,000.00
Ending Class A-3 Adjusted Balance 62,400,000.00
Ending Class B Adjusted Balance 45,600,000.00
Ending Certficate Adjusted Balance 33,600,000.00
Ending Overcollateralization Amount 43,121,955.21
Class A-1 Note Rate Capped at 12.5% 5.812500%
Class A-2 Note Rate Capped at 14.0% 5.937500%
Class A-3 Note Rate Capped at 14.0% 6.037500%
Class B Note Rate Capped at 14.0% 6.337500%
Certificate Rate Capped at 15.0% 6.687500%
Class A-1 Interest Due 3,117,764.81
Class A-2 Interest Due 229,583.33
Class A-3 Interest Due 303,485.00
Class B Interest Due 232,797.50
Certificate Yield Due 181,008.33
Class A-1 Interest Paid 3,117,764.81
Class A-2 Interest Paid 229,583.33
Class A-3 Interest Paid 303,485.00
Class B Interest Paid 232,797.50
Certificate Yield Paid 181,008.33
Class A-1 Unpaid Interest 0.00
Class A-2 Unpaid Interest 0.00
Class A-3 Unpaid Interest 0.00
Class B Unpaid Interest 0.00
Certificate Unpaid Yield 0.00
Class A-1 Principal Paid 20,317,786.17
Class A-2 Principal Paid 0.00
Class A-3 Principal Paid 0.00
Class B Principal Paid 0.00
Certificate Principal Paid 0.00
OC Principal Paid 0.00
Beginning Class A-1 Net Charge-Off 0.00
Beginning Class A-2 Net Charge-Off 0.00
Beginning Class A-3 Net Charge-Off 0.00
Beginning Class B Net Charge-Off 0.00
Beginning Certificate Net Charge-Off 0.00
Beginning OC Net Charge-Off 0.00
Reversals Allocated to Class A-1 0.00
Reversals Allocated to Class A-2 0.00
Reversals Allocated to Class A-3 0.00
Reversals Allocated to Class B 0.00
Reversals Allocated to Certificates 0.00
Reversals Allocated to OC plus Acclerated Principal Payments 561,264.81
Total Charge-Offs: 0.00
Charge-Offs Allocated to Class A-1 0.00
Charge-Offs Allocated to Class A-2 0.00
Charge-Offs Allocated to Class A-3 0.00
Charge-Offs Allocated to Class B 0.00
Charge-Offs Allocated to Certificates 0.00
Charge-Offs Allocated to OC 0.00
Ending Class A-1 Net Charge-Off 0.00
Ending Class A-2 Net Charge-Off 0.00
Ending Class A-3 Net Charge-Off 0.00
Ending Class B Net Charge-Off 0.00
Ending Certificate Net Charge-Off 0.00
Ending OC Net Charge-Off 0.00
Bond Balance Reconciliation (should equal $0.00) 0.00
Certificate Balance/Participation Invested Amount (Begin of Month 3.742%
Designated Certificate / Certificate Security (Bal Begin of Month 1.000%
Designated Certificate - Beginning of Month 336,000.00
Principal Payments in Respect of Designated Certificate (Sec.3.05( 0.00
Designated Certificate - End of Month 336,000.00
Yield Payments in Respect of Designated Certificate (Sec.3.05(a)(i) 1,810.08
Designated Certificateholder Accelerated Principal Payments-Begin 1,760,690.40
Accelerated Principal Payment (Sec. 3.05 (v)) 561,264.81
Payments to Holder of Designated Certificate in respect to Acc. Prin. 0.00
Designated Certificateholder Accelerated Principal Payments-End 2,321,955.21
Designated Certificateholder Holdback Amount (Begin of Month) 40,800,000.00
Payments to Designated Certificates in Reduction of Holdback Amt ( 0.00
Designated Certificateholder Holdback Amount (End of Month) 40,800,000.00
Remaining Payments to Designated Certificates (Sec.3.05paragraph fo 0.00
Remaining Amounts to Issuer (Sec. 3.05 (vii)) 787,183.50
Monthly Security Report
Household Consumer Loan Trust 1997-1
Distribution Date 14-Jul-97
Payment Date: 15-Jul-97
Collection Period Beginning 01-Jun-97
Collection Period Ending: 30-Jun-97
Note and Certificate Accrual Beginning: 16-Jun-97
Note and Certificate Accrual Ending: 15-Jul-97
Ending Pool Principal Balance 3,310,480,356.28
Series 1997-1 Participation Invested Amount 878,267,176.57
Seller Amount 290,344,982.32
Remittances on the Participation 25,169,608.64
Optimum Monthly Principal 19,756,521.35
Accelerated Principal Payment 561,264.81
Beginning Class A-1 Note Security Balance 665,863,007.52
Beginning Class A-2 Note Security Balance 48,000,000.00
Beginning Class A-3 Note Security Balance 62,400,000.00
Beginning Class B Note Security Balance 45,600,000.00
Beginning Certificate Security Balance 33,600,000.00
Beginning Overcollateralization Amount 42,560,690.40
Beginning Class A-1 Adjusted Balance 665,863,007.52
Beginning Class A-2 Adjusted Balance 48,000,000.00
Beginning Class A-3 Adjusted Balance 62,400,000.00
Beginning Class B Adjusted Balance 45,600,000.00
Beginning Certificate Adjusted Balance 33,600,000.00
Beginning Overcollateralization Amount 42,560,690.40
Ending Class A-1 Note Security Balance 645,545,221.35
Ending Class A-2 Note Security Balance 48,000,000.00
Ending Class A-3 Note Security Balance 62,400,000.00
Ending Class B Note Security Balance 45,600,000.00
Ending Certificate Security Balance 33,600,000.00
Ending Overcollateralization Amount 43,121,955.21
Ending Class A-1 Adjusted Balance 645,545,221.35
Ending Class A-2 Adjusted Balance 48,000,000.00
Ending Class A-3 Adjusted Balance 62,400,000.00
Ending Class B Adjusted Balance 45,600,000.00
Ending Certificate Adjusted Balance 33,600,000.00
Ending Overcollateralization Amount 43,121,955.21
Class A-1 Note Rate Capped at 12.5% 5.812500%
Class A-2 Note Rate Capped at 14.0% 5.937500%
Class A-3 Note Rate Capped at 14.0% 6.037500%
Class B Note Rate Capped at 14.0% 6.337500%
Certificate Rate Capped at 15.0% 6.687500%
Class A-1 Interest Due 3,117,764.81
Class A-2 Interest Due 229,583.33
Class A-3 Interest Due 303,485.00
Class B Interest Due 232,797.50
Certificate Yield Due 181,008.33
Class A-1 Interest Paid 3,117,764.81
Class A-2 Interest Paid 229,583.33
Class A-3 Interest Paid 303,485.00
Class B Interest Paid 232,797.50
Certificate Yield Paid 181,008.33
Class A-1 Unpaid Interest 0.00
Class A-2 Unpaid Interest 0.00
Class A-3 Unpaid Interest 0.00
Class B Unpaid Interest 0.00
Cetificate Unpaid Yield 0.00
Class A-1 Principal Paid 20,317,786.17
Class A-2 Principal Paid 0.00
Class A-3 Principal Paid 0.00
Class B Principal Paid 0.00
Certificate Principal Paid 0.00
OC Principal Paid 0.00
Beginning Class A-1 Net Charge-Off 0.00
Beginning Class A-2 Net Charge-Off 0.00
Beginning Class A-3 Net Charge-Off 0.00
Beginning Class B Net Charge-Off 0.00
Beginning Certificate Net Charge-Off 0.00
Beginning OC Net Charge-Off 0.00
Reversals Allocated to Class A-1 0.00
Reversals Allocated to Class A-2 0.00
Reversals Allocated to Class A-3 0.00
Reversals Allocated to Class B 0.00
Reversals Allocated to Certificates 0.00
Reversals Allocated to OC plus Acclerated Principal Payments 561,264.81
Total Charge-Offs: 0.00
Charge-Offs Allocated to Class A-1 0.00
Charge-Offs Allocated to Class A-2 0.00
Charge-Offs Allocated to Class A-3 0.00
Charge-Offs Allocated to Class B 0.00
Charge-Offs Allocated to Certificates 0.00
Charge-Offs Allocated to OC 0.00
Ending Class A-1 Net Charge-Off 0.00
Ending Class A-2 Net Charge-Off 0.00
Ending Class A-3 Net Charge-Off 0.00
Ending Class B Net Charge-Off 0.00
Ending Certificate Net Charge-Off 0.00
Ending OC Net Charge-Off 0.00
Interest paid per $1,000 Class A-1 4.273252
Principal paid per $1,000 Class A-1 27.847843
Interest paid per $1,000 Class A-2 4.782986
Principal paid per $1,000 Class A-2 0.000000
Interest paid per $1,000 Class A-3 4.863542
Principal paid per $1,000 Class A-3 0.000000
Interest paid per $1,000 Class B 5.105208
Principal paid per $1,000 Class B 0.000000
Yield Paid per $1,000 Certificate 5.387153
Principal Paid per $1,000 Certificate 0.000000
