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: June 14, 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
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(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.
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Item 7. FINANCIAL STATEMENTS AND EXHIBITS
(c) Exhibits
--------
99 Statement to Series 1997-1 Participants with respect to the
distribution on June 14, 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
June 15, 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 June 15, 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: June 21, 1999
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Item 7. FINANCIAL STATEMENTS AND EXHIBITS
(c) Exhibits
--------
99
Statement to Series 1997-1 Participants with respect to the
distribution on June 14, 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 June
15, 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 June 15, 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: June 21, 1999
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EXHIBIT INDEX
Exhibit
Number Exhibit Page
- ------- ------- ----
5
99
Statement to Series 1997-1 Participants with respect to the
distribution on June 14, 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 June
15, 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 June 15, 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
Apr 30, 1999
Current Due Period Ending
May 31, 1999
Prior Distribution Date
May 14, 1999
Distribution Date
Jun 14, 1999
Beginning Trust Principal Receivables
4,160,840,874.49
Average Principal Receivables
4,348,700,019.71
FC&A Collections (Includes Recoveries)
69,760,384.22
Principal Collections
138,592,530.49
Additional Balances
66,257,260.47
Net Principal Collections
72,335,270.02
Defaulted Amount
31,469,168.59
Miscellaneous Payments
0.00
Principal Recoveries
2,088,340.00
Beginning Participation Invested Amount
510,036,017.98
Beginning Participation Unpaid Principal Balance
510,036,017.98
Ending Participation Invested Amount
497,861,344.57
Ending Participation Unpaid Principal Balance
497,861,344.57
Accelerated Amortization Date
Feb 28, 2002
Is it the Accelerated Amortization Period? 0=No
0
OC Balance as % of Ending Participation Invested Amount (3 month
average) 9.339%
Is it Early Amortization? (No, if 3 month OC Average >or=4.25%)
0
Investor Finance Charges and Administrative Collections
Numerator for Floating Allocation
510,036,017.98
Numerator for Fixed Allocation
523,598,930.02
Denominator - Max(Sum of Numerators, Principal Receivables)
4,348,700,019.71
Applicable Allocation Percentage
11.7285%
Investor FC&A Collections
8,181,826.39
Series Participation Interest Default Amount
Numerator for Floating Allocation
510,036,017.98
Denominator - Max(Sum of Numerators, Principal Receivables)
4,348,700,019.71
Floating Allocation Percentage
11.7285%
Series Participation Interest Default Amount
3,690,852.29
Principal Allocation Components
Numerator for Floating Allocation
510,036,017.98
Numerator for Fixed Allocation
523,598,930.02
Denominator - Max(Sum of Numerators, Principal Receivables)
4,348,700,019.71
Series Participation Interest Monthly Interest
(a) Series Participation Interest Pass Through Rate, [Max(b,c)]
6.2500%
(b) Prime Rate minus 1.50%
6.2500%
(c) Rate Sufficient to Cover Interest, Yield and Accelerated
Principal Pmt Amount 4.6278%
(d) Series Participation Interest Unpaid Principal Balance
510,036,017.98
(e) Actual days in the Interest Period
31
Series Participation Monthly Interest, [a*d*e]
2,744,985.51
Series Participation Interest Interest Shortfall
0.00
Previous Series Participation Interest Interest Shortfall
0.00
Additional Interest
0.00
Series Participation Interest Monthly Principal
Available Investor Principal Collections, [a+m+n]
12,174,673.41
(a) Investor Principal Collections, [Max(b,h) or e]
8,483,821.12
(b) prior to Accelerated Amort. Date or not Early Amort. Period,
[c*d] 8,483,821.12
(c) Floating Allocation Percentage
11.7285%
(d) Net Principal Collections
72,335,270.02
(e) after Accelerated Amort Date or Early Amort Period, [f*g]
16,687,032.99
(f) Fixed Allocation Percentage
12.0404%
(g) Collections of Principal
138,592,530.49
(h) Minimum Principal Amount, [Min(i,l)]
7,529,940.11
(i) Floating Allocation Percentage of Principal Collections
16,254,784.66
(j) 2.2% of the Series Participation Interest Invested Amount
11,220,792.40
(k) Series Participation Interest Net Default Payment Amount
3,690,852.29
(l) the excess of (j) over (k)
7,529,940.11
(m) Series Participation Interest Net Default Payment Amount
3,690,852.29
(n) Optional Repurchase Amount (principal only) at Sec. 9
0.00
Application of Investor Finance Charges and Admin Collections
Investor Finance Charges and Admin. Collections [Sec. 4.11(a)]
8,181,826.39
Series Servicing Fee paid if HFC is not the Servicer [Sec.
4.11(a)(i)] 0.00
plus any unpaid Series Servicing Fee of other than HFC
0.00
Series Participation Interest Monthly Interest [Sec. 4.11(a)(ii)]
2,744,985.51
Series Participation Interest Interest Shorfall [Sec. 4.11(a)(ii)]
0.00
Additional Interest [Sec. 4.11(a)(ii)]
0.00
Series Participation Interest Default Amount [Sec. 4.11(a)(iii)]
3,690,852.29
Reimbursed Series Participation Interest Charge-Offs [Sec.
4.11(a)(iv)] 0.00
Servicing Fee Paid [Sec. 4.11(a)(v)]
850,060.03
Excess [Sec. 4.11(a)(vi)]
895,928.56
Series Participation Investor Charge Off [Sec. 4.12(a)]
0.00
Series 1997-1 Owner Trust Calculations
Due Period Ending May 31,
1999
Payment Date Jun 15,
1999
Calculation of Interest Expense
Index (LIBOR)
4.902500%
Accrual end date, accrual beginning date and days in Jun 15,
1999 May 17, 1999 29
Interest Period
Class
A-1 Class A-2 Class A-3 Class B
Certificates Overcoll Amount
Beginning Unpaid Principal Balance
271,432,643.72 48,000,000.00 62,400,000.00 45,600,000.00
33,600,000.00 49,003,374.26
Previously unpaid interest/yield
0.00 0.00 0.00 0.00
0.00
Spread to index
0.125% 0.250% 0.350% 0.650%
1.000%
Rate (capped at 12.5%, 14%, 14%, 14%, 15%)
5.027500% 5.152500% 5.252500% 5.552500%
5.902500%
Interest/Yield Payable on the Principal Balance
1,099,283.36 199,230.00 264,025.67 203,961.83
159,761.00
Interest on previously unpaid interest/yield
0.00 0.00 0.00 0.00
0.00
Interest/Yield Due
1,099,283.36 199,230.00 264,025.67 203,961.83
159,761.00
Interest/Yield Paid
1,099,283.36 199,230.00 264,025.67 203,961.83
159,761.00
Summary
Beginning Security Balance
271,432,643.72 48,000,000.00 62,400,000.00 45,600,000.00
33,600,000.00 49,003,374.26
Beginning Adjusted Balance
271,432,643.72 48,000,000.00 62,400,000.00 45,600,000.00
33,600,000.00
Principal Paid
0.00 0.00 0.00
0.00 0.00
12,280,930.91
Ending Security Balance
259,151,712.81 48,000,000.00 62,400,000.00 45,600,000.00
33,600,000.00 49,109,631.76
Ending Adjusted Balance
259,151,712.81 48,000,000.00 62,400,000.00 45,600,000.00
33,600,000.00
Ending Certificate Balance as % Participation
6.7489%
Interest Invested Amount
Targeted Balance
66,138,038.12 51,034,865.85
40,285,159.97
258,887,899.18 49,416,063.32
Minimum Adjusted Balance
16,000,000.00 20,800,000.00 15,200,000.00
11,200,000.00 13,600,000.00
Certificate Minimum Balance
5,028,897.44
Ending OC Amount as Holdback Amount
40,800,000.00
Ending OC Amount as Accelerated Prin Pmts
8,309,631.76
Beginning Net Charge offs
0.00 0.00 0.00 0.00
0.00 0.00
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 Charge Offs
0.00 0.00 0.00 0.00
0.00 0.00
Interest/Yield Paid per $1000
$1.5066932 $4.1506250 $4.2311806 $4.4728471
$4.7547917
Principal Paid per $1000
$16.8324163 $0.0000000 $0.0000000 $0.0000000
$0.0000000
Series 1997-1 Owner Trust Calculations
Due Period
May 1999
Payment Date
Jun 15, 1999
Optimum Monthly Principal [a+b+c]
(a) Available Investor Principal Collections
12,174,673.41
(b) Series Participation Interest Charge Offs
0.00
(c) Lesser of Excess Interest and Carryover Charge offs
0.00
Accelerated Principal Payment
106,257.50
Series Participation Interest Monthly Interest
2,744,985.51
Allocation of Optimum Monthly Principal and Series Part. Interest
Monthly Interest
Interest and Yield
Pay Class A-1 Interest Distribution- Sec. 3.05(a)(i)(a)
1,099,283.36
Pay Class A-2 Interest Distribution- Sec. 3.05(a)(i)(b)
199,230.00
Pay Class A-3 Interest Distribution- Sec. 3.05(a)(i)(c)
264,025.67
Pay Class B Interest Distribution- Sec. 3.05(a)(i)(d)
203,961.83
Pay Certificates the Certificate Yield- Sec. 3.05(a)(i)(e)
159,761.00
Principal up to Optimum Monthly Principal Balance
Pay Class A-1 to Targeted Principal Balance- Sec. 3.05(a)(ii)(a)
12,174,673.41
Pay Class A-2 to Targeted Principal Balance subject to Min Adj
Bal- Sec. 0.00
3.05(a)(ii)(b)
Pay Class A-3 to Targeted Principal Balance subject to Min Adj
Bal- Sec. 0.00
3.05(a)(ii)(c)
Pay Class B to Targeted Principal Balance subject to Min Adj Bal-
Sec. 0.00
3.05(a)(ii)(d)
Pay Certificate Yield if not paid pursuant to Sec. 3.05 (a)(i)(e)
0.00
Principal up to Optimal Monthly Principal
Pay Certificate to Targeted Principal Balance subject to Min Adj
Bal- Sec. 0.00
3.05(a)(iii)
Pay OC Remaining Optimal Monthly Prin Amt subject to OC Min Bal-
Sec. 3.05(a)(iv) 0.00
Principal up to Accelerated Principal Payment Amout
Pay Class A-1 to Targeted Principal Balance subject to Min Adj
Bal- Sec. 106,257.50
3.05(a)(v)(a)
Pay Class A-2 to Targeted Principal Balance subject to Min Adj
Bal- Sec. 0.00
3.05(a)(v)(b)
Pay Class A-3 to Targeted Principal Balance subject to Min Adj
Bal- Sec. 0.00
3.05(a)(v)(c)
Pay Class B to Targeted Principal Balance subject to Min Adj Bal-
Sec. 0.00
3.05(a)(v)(d)
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
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 Balance or zero- Sec.
3.05(a)(vi)(e) 0.00
Pay HCLC Optimum Monthly Principal provided OC >0- Sec.
3.05(a)(vi)(f) 0.00
Remaining Amounts to Holder of Designated Certificate - Sec.
3.05(a)(vii) 712,466.15
Allocations of Distributions to Overcollateralization Amount
Available Distributions
Pay OC Remaining Optimal Monthly Prin Amt subject to OC Min
Bal- Sec. 0.00
3.05(a)(iv)
Pay HCLC Optimum Monthly Principal provided OC >0- Sec.
3.05(a)(vi) 0.00
To Designated Certificate Holder up to total Accelerated Principal
Payments 0.00
To Designated Certificate Holder up to Holdback Amount
0.00
To HCLC any remaining amounts
0.00
Principal paid to the Designated Certificate
0.00
