<PAGE> 1
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: October 15, 1999
HOUSEHOLD CONSUMER LOAN TRUST 1997-2
------------------------------------
(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 333-36405-02 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
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Item 7. FINANCIAL STATEMENTS AND EXHIBITS
(c) Exhibits
--------
99 Statement to Series 1997-2 Participants with respect to
the distribution on October 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
1997-2 Supplement to the Pooling and Servicing Agreement,
(b) Noteholders with respect to the Payment Date on
October 15, 1999 as provided for under Section 3.23 of
the Indenture dated as of November 1, 1997 between
Household Consumer Loan Trust 1997-2 and The Bank of New
York, as Indenture Trustee, and (c) Certificateholders
with respect to the Payment Date on October 15, 1999 as
provided for under Section 5.04 of the Trust Agreement
dated as of November 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 1997-2
----------------------------------------
(Registrant)
By: /s/ J. W. Blenke
-----------------------------------
J. W. Blenke
Authorized Representative
Dated: October 26, 1999
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EXHIBIT INDEX
Exhibit
Number Exhibit Page
- ------- ------- ----
4
99 Statement to Series 1997-2 Participants with respect to
the distribution on October 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 1997-2 Supplement to the Pooling and Servicing Agreement,
(b) Noteholders with respect to the Payment Date on October 15,
1999 as provided for under Section 3.23 of the Indenture dated as
of November 1, 1997 between Household Consumer Loan Trust 1997-2
and The Bank of New York, as Indenture Trustee, and (c)
Certificateholders with respect to the Payment Date on October 15,
1999 as provided for under Section 5.04 of the Trust Agreement
dated as of November 1, 1997 between Household Consumer Loan
Corporation and The Chase Manhattan Bank Delaware, as Owner
Trustee.
U:\WP\HFS088\8K\HCLT97-2.8K
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<TABLE>
<CAPTION>
Household Consumer Loan Trust, Series 1997-2
Deposit Trust Calculations
Previous Due Period Ending Aug 31, 1999
Current Due Period Ending Sep 30, 1999
Prior Distribution Date Sep 14, 1999
Distribution Date Oct 14, 1999
<S> <C>
Beginning Trust Principal Receivables 4,105,108,365.72
Average Principal Receivables 4,104,937,835.45
FC&A Collections (Includes Recoveries) 64,771,302.74
Principal Collections 134,834,398.30
Additional Balances 58,382,153.83
Net Principal Collections 76,452,244.47
Defaulted Amount 33,144,878.15
Miscellaneous Payments 0.00
Principal Recoveries 1,736,151.00
Beginning Participation Invested Amount 677,977,428.18
Beginning Participation Unpaid Principal 677,977,428.17
Balance
Ending Participation Invested Amount 659,876,210.01
Ending Participation Unpaid Principal Balance 659,876,210.00
Accelerated Amortization Date Oct 31, 2002
Is it the Accelerated Amortization Period? 0
0=No
OC Balance as % of Ending Participation 9.769%
Invested Amount (3 month average)
Is it Early Amortization? (No, if 3 month OC 0
Average >or=4.25%) 0=NO, 1=YES
Investor Finance Charges and Administrative
Collections
Numerator for Floating Allocation 677,977,428.18
Numerator for Fixed Allocation 699,259,561.89
Denominator - Max(Sum of Numerators, Principal 4,104,937,835.45
Receivables)
Applicable Allocation Percentage 16.5161%
Investor FC&A Collections 10,697,721.38
Series Participation Interest Default Amount
Numerator for Floating Allocation 677,977,428.18
Denominator - Max(Sum of Numerators, Principal 4,104,937,835.45
Receivables)
Floating Allocation Percentage 16.5161%
Series Participation Interest Default Amount 5,474,255.68
Principal Allocation Components
Numerator for Floating Allocation 677,977,428.18
Numerator for Fixed Allocation 699,259,561.89
Denominator - Max(Sum of Numerators, Principal 4,104,937,835.45
Receivables)
Series Participation Interest Monthly Interest
(a) Series Participation Interest Pass Through 6.7500%
Rate, [Max(b,c)]
(b) Prime Rate minus 1.50% 6.7500%
(c) Rate Sufficient to Cover Interest, Yield 5.3772%
and Accelerated Principal Pmt Amount
(d) Series Participation Interest Unpaid 677,977,428.17
Principal Balance
(e) Actual days in the Interest Period 30
Series Participation Monthly Interest, [a*d*e] 3,813,623.03
Series Participation Interest Interest 0.00
Shortfall
Previous Series Participation Interest Interest 0.00
Shortfall
Additional Interest 0.00
<PAGE> 2
Series Participation Interest Monthly Principal
Available Investor Principal Collections, 18,101,218.17
[a+m+n]
(a) Investor Principal Collections, [Max(b,h) 12,626,962.49
or e]
(b) prior to Accelerated Amort. Date or not 12,626,962.49
Early Amort. Period, [c*d]
(c) Floating Allocation Percentage 16.5161%
(d) Net Principal Collections 76,452,244.47
(e) after Accelerated Amort Date or Early Amort 22,968,494.55
Period, [f*g]
(f) Fixed Allocation Percentage 17.0346%
(g) Collections of Principal
134,834,398.30
(h) Minimum Principal Amount, [Min(i,l)] 9,441,247.74
(i) Floating Allocation Percentage of 22,269,442.86
Principal Collections
(j) 2.5% or 2.2% of the Series Participation 14,915,503.42
Interest Invested Amount
(k) Series Participation Interest Net Default 5,474,255.68
Payment Amount
(l) the excess of (j) over (k) 9,441,247.74
(m) Series Participation Interest Net Default 5,474,255.68
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 10,697,721.38
[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 3,813,623.03
[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 5,474,255.68
[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)] 1,129,962.38
Excess [Sec. 4.11(a)(vi)] 279,880.29
Series Participation Investor Charge Off [Sec. 0.00
4.12(a)]
</TABLE>
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<TABLE>
<CAPTION>
Series 1997-2
Owner Trust
Calculations
Due Period Sep 30,
Ending 1999
Payment Date Oct 15,
1999
Calculation of
Interest
Expense
Index (LIBOR) 5.380000%
Accrual end Oct 15, Sep 15, 30
date, accrual 1999 1999
beginning date
and days in
Interest
Period
<S> <C> <C> <C> <C> <C> <C>
Class A-1 Class A-2 Class A-3 Class B Certificate Overcoll
s Amount
Beginning 372,674,938 48,000,000 90,000,000 57,000,000 42,000,000 68,302,490
Unpaid
Principal
Balance
Previously 0.00 0.00 0.00 0.00 0.00
unpaid
interest/yield
Spread to 0.18% 0.29% 0.40% 0.65% 1.00%
index
Rate (capped 5.560000% 5.670000% 5.780000% 6.030000% 6.380000%
at 12.5%, 14%,
14%, 14%, 15%)
Interest/Yield 1,726,727 226,800 433,500 286,425 223,300
Payable on the
Principal
Balance
Interest on 0.00 0.00 0.00 0.00 0.00
previously
unpaid
interest/yield
Interest/Yield 1,726,727 226,800 433,500 286,425 223,300
Due
Interest/Yield 1,726,727 226,800 433,500 286,425 223,300
Paid
Summary
Beginning
Security 372,674,938 48,000,000 90,000,000 57,000,000 42,000,000 68,302,490
Balance
Beginning
Adjusted 372,674,938 48,000,000 90,000,000 57,000,000 42,000,000
Balance
Principal Paid 0.00 0.00 0.00 0.00 0.00
18,242,463
Ending
Security 354,432,474 48,000,000 90,000,000 57,000,000 42,000,000 68,443,736
Balance
Ending
Adjusted 354,432,474 48,000,000 90,000,000 57,000,000 42,000,000
Balance
Ending 6.3648%
Certificate
Balance as %
Participation
Interest
Invested
Amount
Targeted
Balance 343,135,629 61,148,293 98,932,200 65,021,678 54,213,012
Minimum
Adjusted 16,000,000 30,000,000 19,000,000 14,000,000 17,000,000
Balance
Certificate
Minimum 6,665,410
Balance
Ending OC
Amount as 51,000,000
Holdback
Amount
Ending OC
Amount as 17,443,736
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 $1.8933412 $4.7250000 $4.8166667 $5.0250000 $5.3166667
Paid per $1000
Principal Paid $20.0027012 $0.0000000 $0.0000000 $0.0000000 $0.0000000
per $1000
</TABLE>
<PAGE>
<PAGE> 1
<TABLE>
<CAPTION>
Series 1997-2 Owner Trust Calculations
Due Period September 1999
Payment Date Oct 15, 1999
<S> <C>
Optimum Monthly Principal [a+b+c]
(a) Available Investor Principal Collections 18,101,218.17
(b) Series Participation Interest Charge Offs 0.00
(c) Lesser of Excess Interest and Carryover 0.00
Charge offs
Accelerated Principal Payment 141,245.30
Series Participation Interest Monthly Interest 3,813,623.03
Allocation of Optimum Monthly Principal and
Series Part. Interest Monthly Interest
Interest and Yield
Pay Class A-1 Interest Distribution- Sec. 1,726,727.21
3.05(a)(i)(a)
Pay Class A-2 Interest Distribution- Sec. 226,800.00
3.05(a)(i)(b)
Pay Class A-3 Interest Distribution- Sec. 433,500.00
3.05(a)(i)(c)
Pay Class B Interest Distribution- Sec. 286,425.00
3.05(a)(i)(d)
Pay Certificates the Certificate Yield- Sec. 223,300.00
3.05(a)(i)(e)
Principal up to Optimum Monthly Principal
Balance
Pay Class A-1 to Targeted Principal Balance- 18,101,218.17
Sec. 3.05(a)(ii)(a)
Pay Class A-2 to Targeted Principal Balance 0.00
subject to Min Adj Bal- Sec. 3.05(a)(ii)(b)
Pay Class A-3 to Targeted Principal Balance 0.00
subject to Min Adj Bal- Sec. 3.05(a)(ii)(c)
Pay Class B to Targeted Principal Balance 0.00
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 0.00
subject to Min Adj Bal- Sec. 3.05(a)(iii)
Pay OC Remaining Optimal Monthly Prin Amt 0.00
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 141,245.30
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) 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 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 775,625.52
Certificate - Sec. 3.05(a)(vii)
<PAGE> 2
Allocations of Distributions to
Overcollateralization Amount
Available Distributions
Pay OC Remaining Optimal Monthly Prin Amt 0.00
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 0.00
Accelerated Principal Payments
To Designated Certificate Holder up to Holdback 0.00
Amount
To HCLC any remaining amounts 0.00
Principal paid to the Designated Certificate 0.00
</TABLE>
