<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: September 14, 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 4
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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 1997-2 Participants with respect to the
distribution on September 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
September 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
September 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: September 21, 1999
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EXHIBIT INDEX
Exhibit
Number Exhibit Page
- ------- ------- ----
5
99
Statement to Series 1997-2 Participants with respect to the
distribution on September 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 September 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 September
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>
<S> <C>
Household Consumer Loan Trust, Series 1997-2
Deposit Trust Calculations
Previous Due Period Ending Jul 31, 1999
Current Due Period Ending Aug 31, 1999
Prior Distribution Date Aug 13, 1999
Distribution Date Sep 14, 1999
Beginning Trust Principal Receivables 4,029,388,105.37
Average Principal Receivables 4,233,765,515.08
FC&A Collections (Includes Recoveries) 69,405,139.50
Principal Collections 163,046,986.46
Additional Balances 65,667,445.08
Net Principal Collections 97,379,541.38
Defaulted Amount 31,476,134.98
Miscellaneous Payments 0.00
Principal Recoveries 1,790,947.00
Beginning Participation Invested Amount 699,259,561.89
Beginning Participation Unpaid Principal 699,259,561.88
Balance
Ending Participation Invested Amount 677,977,428.18
Ending Participation Unpaid Principal Balance 677,977,428.17
Accelerated Amortization Date Oct 31, 2002
Is it the Accelerated Amortization Period? 0
0=No
OC Balance as % of Ending Participation 9.490%
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 699,259,561.89
Numerator for Fixed Allocation 716,852,897.00
Denominator - Max(Sum of Numerators, Principal 4,233,765,515.08
Receivables)
Applicable Allocation Percentage 16.5163%
Investor FC&A Collections 11,463,130.70
Series Participation Interest Default Amount
Numerator for Floating Allocation 699,259,561.89
Denominator - Max(Sum of Numerators, Principal 4,233,765,515.08
Receivables)
Floating Allocation Percentage 16.5163%
Series Participation Interest Default Amount 5,198,679.11
Principal Allocation Components
Numerator for Floating Allocation 699,259,561.89
Numerator for Fixed Allocation 716,852,897.00
Denominator - Max(Sum of Numerators, Principal 4,233,765,515.08
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 4.9604%
and Accelerated Principal Pmt Amount
(d) Series Participation Interest Unpaid 699,259,561.88
Principal Balance
(e) Actual days in the Interest Period 32
Series Participation Monthly Interest, [a*d*e] 4,040,166.36
Series Participation Interest Interest 0.00
Shortfall
Previous Series Participation Interest Interest 0.00
Shortfall
Additional Interest 0.00
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<PAGE> 2
Series Participation Interest Monthly Principal
Available Investor Principal Collections, 21,282,133.71
[a+m+n]
(a) Investor Principal Collections, [Max(b,h) 16,083,454.60
or e]
(b) prior to Accelerated Amort. Date or not 16,083,454.60
Early Amort. Period, [c*d]
(c) Floating Allocation Percentage 16.5163%
(d) Net Principal Collections 97,379,541.38
(e) after Accelerated Amort Date or Early Amort 27,606,796.88
Period, [f*g]
(f) Fixed Allocation Percentage 16.9318%
(g) Collections of Principal
163,046,986.46
(h) Minimum Principal Amount, [Min(i,l)] 10,185,031.25
(i) Floating Allocation Percentage of 26,929,258.11
Principal Collections
(j) 2.5% or 2.2% of the Series Participation 15,383,710.36
Interest Invested Amount
(k) Series Participation Interest Net Default 5,198,679.11
Payment Amount
(l) the excess of (j) over (k) 10,185,031.25
(m) Series Participation Interest Net Default 5,198,679.11
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 11,463,130.70
[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 4,040,166.36
[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 5,198,679.11
[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)] 1,165,432.60
Excess [Sec. 4.11(a)(vi)] 1,058,852.63
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 Aug 31, 1999
Ending
Payment Date Sep 15, 1999
Calculation ofInterest Expense
Index (LIBOR) 5.268750%
Accrual end Sep 15, 1999 Aug 16, 30
date, accrual 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 394,102,751 48,000,000 90,000,000 57,000,000 42,000,000 68,156,811
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 5.448750% 5.558750% 5.668750% 5.918750% 6.268750%
at 12.5%, 14%,
14%, 14%, 15%)
Interest/Yield 1,789,473 222,350 425,156 281,141 219,406
Payable on the
Principal
Balance
Interest on 0.00 0.00 0.00 0.00 0.00
previously
unpaid
interest/yield
Interest/Yield 1,789,473 222,350 425,156 281,141 219,406
Due
Interest/Yield 1,789,473 222,350 425,156 281,141 219,406
Paid
Summary
Beginning 394,102,751 48,000,000 90,000,000 57,000,000 42,000,000 68,156,811
Security
Balance
Beginning 394,102,751 48,000,000 90,000,000 57,000,000 42,000,000
Adjusted
Balance
Principal Paid 0.00 0.00 0.00 0.00 0.00
21,427,813
Ending
Security 372,674,938 48,000,000 90,000,000 57,000,000 42,000,000 68,302,490
Balance
Ending
Adjusted 372,674,938 48,000,000 90,000,000 57,000,000 42,000,000
Balance
Ending 6.1949%
Certificate
Balance as %
Participation
Interest
Invested
Amount
Targeted
Balance 352,548,263 54,305,163 94,442,228 62,070,310 52,528,730
Minimum
Adjusted 16,000,000 30,000,000 19,000,000 14,000,000 17,000,000
Balance
Certificate
Minimum 6,848,250
Balance
Ending OC
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Amount as 51,000,000
Holdback
Amount
Ending OC
Amount as 17,302,490
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 $1.9621412 $4.6322917 $4.7239583 $4.9322918 $5.2239583
Paid per $1000
Principal Paid $23.4954088 $0.0000000 $0.0000000 $0.0000000 $0.0000000
per $1000
</TABLE>
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<TABLE>
<S> <C>
Series 1997-2 Owner Trust Calculations
Due Period August 1999
Payment Date Sep 15, 1999
Optimum Monthly Principal [a+b+c]
(a) Available Investor Principal Collections 21,282,133.71
(b) Series Participation Interest Charge Offs 0.00
(c) Lesser of Excess Interest and Carryover 0.00
Charge offs
Accelerated Principal Payment 145,679.08
Series Participation Interest Monthly Interest 4,040,166.36
Allocation of Optimum Monthly Principal and
Series Part. Interest Monthly Interest
Interest and Yield
Pay Class A-1 Interest Distribution- Sec. 1,789,472.80
3.05(a)(i)(a)
Pay Class A-2 Interest Distribution- Sec. 222,350.00
3.05(a)(i)(b)
Pay Class A-3 Interest Distribution- Sec. 425,156.25
3.05(a)(i)(c)
Pay Class B Interest Distribution- Sec. 281,140.63
3.05(a)(i)(d)
Pay Certificates the Certificate Yield- Sec. 219,406.25
3.05(a)(i)(e)
Principal up to Optimum Monthly Principal
Balance
Pay Class A-1 to Targeted Principal Balance- 21,282,133.71
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 145,679.08
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 956,961.35
Certificate - Sec. 3.05(a)(vii)
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<PAGE> 6
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
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