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: August 13, 1999
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
Item 5. OTHER EVENTS.
As provided for in Section 4.06 of the Pooling and Servicing Agreement
(the "Pooling Agreement") for Household Consumer Loan Deposit Trust I (the
"Trust"), as of March 15, 1999, the Pooling Agreement was amended to create
two pools of assets within the Trust. All Receivables that were assigned to
the Trust prior to the date of the amendment are contained in Pool 1. Those
Receivables consist of revolving consumer loans. Receivables assigned to the
Trust after the amendment will be designated as assets in Pool 1 or Pool 2.
It is expected that Pool 2 will consist of both revolving and closed-end
loans.
The Pooling Agreement was also amended to assign each existing Series,
and all Series issued in the future to a Group. All Series outstanding as of
the date of the amendment (Series 1995-1, 1996-1, 1996-2, 1997-1, 1997-2,
1997-A, 1996-B and 1999-A) were assigned to Group 1. Series issued by the
Trust after the amendment will be assigned to Group 1 or Group 2. Prior to
the date of this report, Series 1999-A2, 1999-B2 and 1999-C2 were issued and
assigned to Group 2.
Collections on Receivables in Pool 1 will be allocated to make payments
of principal and interest on each Series in Group 1, while collections on
Receivables in Pool 2 will be allocated to make payments due on Series in
Group 2. However, the amendment to the Pooling Agreement also provides that
excess finance charges in both Pools will be shared among all Series, whether
in Group 1 or Group 2. Excess finance charges from Group 2 will be available
to reimburse investors in Series 1995-1, 1996-1, 1996-2, 1997-1 and 1997-2
for Series Participation Interest Charge-Offs at the time such Series
terminates.
These amendments to the Pooling Agreement did not affect the nature or
type of assets supporting any existing Series and, for Series 1995-1, 1996-1,
1996-2, 1997-1 and 1997-2, will not delay an amortization event for any of
such Series. In addition, the ratings assigned to the Series 1995-1, 1996-1,
1996-2, 1997-1 and 1997-2 certificates have not been impacted as a result of
this amendment.
-2-
Item 7. FINANCIAL STATEMENTS AND EXHIBITS
(c) Exhibits
--------
99 Statement to Series 1997-1 Participants with respect to the
distribution on August 13, 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 1997-1 Supplement to the Pooling
and Servicing Agreement, (b) Noteholders with respect to the Payment Date on
August 16, 1999 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 August 16, 1999 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: August 27, 1999
----------------------
- 3 -
Item 7. FINANCIAL STATEMENTS AND EXHIBITS
(c) Exhibits
--------
99
Statement to Series 1997-1 Participants with respect to the
distribution on August 13, 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 1997-1 Supplement to the Pooling
and Servicing Agreement, (b) Noteholders with respect to the Payment Date on
August 16, 1999 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 August 16, 1999 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:
-----------------------------------
J. W. Blenke
Authorized Representative
Dated: August 27, 1999
----------------------
- 3 -
EXHIBIT INDEX
Exhibit
Number Exhibit Page
- ------- ------- ----
5
99
Statement to Series 1997-1 Participants with respect to the
distribution on August 13, 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 1997-1 Supplement to the Pooling
and Servicing Agreement, (b) Noteholders with respect to the Payment Date on
August 16, 1999 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 August 16, 1999 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
- 4 -
Household Consumer Loan Trust, Series 1997-1
Deposit Trust Calculations
Previous Due Period Ending Jun 30, 1999
Current Due Period Ending Jul 31, 1999
Prior Distribution Date Jul 14, 1999
Distribution Date Aug 13, 1999
Beginning Trust Principal Receivables 4,131,498,693.96
Average Principal Receivables 4,130,593,246.88
FC&A Collections (Includes Recoveries) 63,953,339.31
Principal Collections 126,063,460.22
Additional Balances 54,118,984.50
Net Principal Collections 71,944,475.72
Defaulted Amount 29,430,452.81
Miscellaneous Payments 0.00
Principal Recoveries 1,891,023.00
Beginning Participation Invested Amount 485,740,549.16
Beginning Participation Unpaid Principal 485,740,549.16
Balance
Ending Participation Invested Amount 473,819,280.11
Ending Participation Unpaid Principal Balance 473,819,280.11
Accelerated Amortization Date Feb 28, 2002
Is it the Accelerated Amortization Period? 0
0=No
OC Balance as % of Ending Participation 9.487%
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 485,740,549.16
Numerator for Fixed Allocation 497,861,344.57
Denominator - Max(Sum of Numerators, Principal 4,130,593,246.88
Receivables)
Applicable Allocation Percentage 11.7596%
Investor FC&A Collections 7,520,646.14
Series Participation Interest Default Amount
Numerator for Floating Allocation 485,740,549.16
Denominator - Max(Sum of Numerators, Principal 4,130,593,246.88
Receivables)
Floating Allocation Percentage 11.7596%
Series Participation Interest Default Amount 3,460,898.58
Principal Allocation Components
Numerator for Floating Allocation 485,740,549.16
Numerator for Fixed Allocation 497,861,344.57
Denominator - Max(Sum of Numerators, Principal 4,130,593,246.88
Receivables)
Series Participation Interest Monthly Interest
(a) Series Participation Interest Pass Through 6.5000%
Rate, [Max(b,c)]
(b) Prime Rate minus 1.50% 6.5000%
(c) Rate Sufficient to Cover Interest, Yield 5.5612%
and Accelerated Principal Pmt Amount
(d) Series Participation Interest Unpaid 485,740,549.16
Principal Balance
(e) Actual days in the Interest Period 30
Series Participation Monthly Interest, [a*d*e] 2,631,094.64
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, 11,921,269.05
[a+m+n]
(a) Investor Principal Collections, [Max(b,h) 8,460,370.47
or e]
(b) prior to Accelerated Amort. Date or not 8,460,370.47
Early Amort. Period, [c*d]
(c) Floating Allocation Percentage 11.7596%
(d) Net Principal Collections 71,944,475.72
(e) after Accelerated Amort Date or Early Amort 15,194,457.56
Period, [f*g]
(f) Fixed Allocation Percentage 12.0530%
(g) Collections of Principal
126,063,460.22
(h) Minimum Principal Amount, [Min(i,l)] 7,225,393.50
(i) Floating Allocation Percentage of 14,824,537.48
Principal Collections
(j) 2.2% of the Series Participation Interest 10,686,292.08
Invested Amount
(k) Series Participation Interest Net Default 3,460,898.58
Payment Amount
(l) the excess of (j) over (k) 7,225,393.50
(m) Series Participation Interest Net Default 3,460,898.58
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 7,520,646.14
[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 2,631,094.64
[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 3,460,898.58
[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)] 809,567.58
Excess [Sec. 4.11(a)(vi)] 619,085.34
Series Participation Investor Charge Off [Sec. 0.00
4.12(a)]
<PAGE>
Series 1997-1
Owner Trust
Calculations
Due Period Jul 31,
Ending 1999
Payment Date Aug 16,
1999
Calculation of
Interest Expense
Index (LIBOR) 5.180000%
Accrual end Aug 16, Jul 15, 32
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 Unpaid 252,481,364 48,000,000 62,400,000 45,600,000
33,600,000 43,659,185
Principal
Balance
Previously 0.00 0.00 0.00 0.00
0.00
unpaid
interest/yield
Spread to index 0.125% 0.250% 0.350% 0.650%
1.000%
Rate (capped at 5.305000% 5.430000% 5.530000% 5.830000%
6.180000%
12.5%, 14%, 14%,
14%, 15%)
Interest/Yield 1,190,590 231,680 306,731 236,309
184,576
Payable on the
Principal
Balance
Interest on 0 0 0 0
0
previously
unpaid
interest/yield
Interest/Yield 1,190,590 231,680 306,731 236,309
184,576
Due
Interest/Yield 1,190,590 231,680 306,731 236,309
184,576
Paid
Summary
Beginning
Security Balance 252,481,364 48,000,000 62,400,000 45,600,000
33,600,000 43,659,185
Beginning
Adjusted Balance 252,481,364 48,000,000 62,400,000 45,600,000
33,600,000
Principal Paid
6,196,535 618,072 803,494 587,168
432,650 3,384,546
Ending Security
Balance 246,284,830 47,381,928 61,596,506 45,012,832
33,167,350 40,375,835
Ending Adjusted
Balance 246,284,830 47,381,928 61,596,506 45,012,832
33,167,350
Ending
7.0000%
Certificate
Balance as %
Participation
Interest
Invested Amount
Targeted Balance
246,386,026 47,381,928 61,596,506 45,012,832
33,167,350
Minimum Adjusted
Balance 16,000,000 20,800,000 15,200,000
11,200,000 13,600,000
Certificate
Minimum Balance
4,786,049
Ending OC Amount
as Holdback
32,066,203
Amount
Ending OC Amount
as Accelerated
8,309,632
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 $1.6318392 $4.8266667 $4.9155556 $5.1822221
$5.4933333
Paid per $1000
Principal Paid $8.4930575 $12.8764998 $12.8764998 $12.8764998
$12.8764997
per $1000
Series 1997-1 Owner Trust Calculations
Due Period July 1999
Payment Date Aug 16, 1999
Optimum Monthly Principal [a+b+c]
(a) Available Investor Principal Collections 11,921,269.05
(b) Series Participation Interest Charge Offs 0.00
(c) Lesser of Excess Interest and Carryover 0.00
Charge offs
Accelerated Principal Payment 101,195.95
Series Participation Interest Monthly Interest 2,631,094.64
Allocation of Optimum Monthly Principal and
Series Part. Interest Monthly Interest
Interest and Yield
Pay Class A-1 Interest Distribution- Sec. 1,190,589.90
3.05(a)(i)(a)
Pay Class A-2 Interest Distribution- Sec. 231,680.00
3.05(a)(i)(b)
Pay Class A-3 Interest Distribution- Sec. 306,730.67
3.05(a)(i)(c)
Pay Class B Interest Distribution- Sec. 236,309.33
3.05(a)(i)(d)
Pay Certificates the Certificate Yield- Sec. 184,576.00
3.05(a)(i)(e)
Principal up to Optimum Monthly Principal
Balance
Pay Class A-1 to Targeted Principal Balance- 6,095,338.79
Sec. 3.05(a)(ii)(a)
Pay Class A-2 to Targeted Principal Balance 618,071.99
subject to Min Adj Bal- Sec. 3.05(a)(ii)(b)
Pay Class A-3 to Targeted Principal Balance 803,493.59
subject to Min Adj Bal- Sec. 3.05(a)(ii)(c)
Pay Class B to Targeted Principal Balance 587,168.39
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 432,650.39
subject to Min Adj Bal- Sec. 3.05(a)(iii)
Pay OC Remaining Optimal Monthly Prin Amt 3,384,545.90
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) 101,195.95
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 380,012.79
Certificate - Sec. 3.05(a)(vii)
Allocations of Distributions to
Overcollateralization Amount
Available Distributions
Pay OC Remaining Optimal Monthly Prin Amt 3,384,545.90
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 101,195.95
Accelerated Principal Payments
To Designated Certificate Holder up to Holdback 3,283,349.95
Amount
To HCLC any remaining amounts 0.00
Principal paid to the Designated Certificate 4,326.50
