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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-K
(Mark One)
[X] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended December 31, 1999
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from ______ to _______
Commission File No. 333-59837
HOUSEHOLD AUTOMOBILE REVOLVING TRUST I, SERIES 1998-1
(Exact name of Registrant as specified in Department
of the Treasury, Internal Revenue Service Form SS-4)
HOUSEHOLD FINANCE CORPORATION
(Master Servicer of the Trust)
(Exact name as specified in Master Servicer's charter)
DELAWARE Not Applicable.
(State or other jurisdiction of (I.R.S. Employer
incorporation of Master Identification Number of
Servicer) Registrant)
2700 SANDERS ROAD, PROSPECT HEIGHTS, ILLINOIS 60070
(Address of principal executive offices of (Zip Code)
Master Servicer)
Master Servicer's telephone number, including area code:
(847)564-5000
Indicate by check mark whether the Registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding 12 months (or
for such shorter period that the Registrant was required to file
such reports), and (2) has been subject to such filing requirements
for the past 90 days.
Yes X No
The aggregate principal amount of the Notes held by non-affiliates
of the Master Servicer as of December 31, 1999 was approximately
$377,832 Million.
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INTRODUCTORY NOTE
Household Auto Receivables Corporation (the "Seller") is the
seller under the amended and restated Master Sale and Servicing
Agreement (the "Agreement") dated as of November 1, 1998, by and
among Household Automobile Revolving Trust I, as Issuer, the
Seller, Household Finance Corporation, as Master Servicer (the
"Master Servicer") and The Chase Manhattan Bank, as trustee (the
"Trustee"), with respect to the Series 1998-1 Notes (the "Notes").
The Notes consist of eight classes of notes. Two classes are
held by the Seller. As of December 31, 1999, the outstanding
principal balance of the Series 1998-1 Notes was approximately
$ 499,335,642.29 and the receivables held by the Issuer had an
aggregate outstanding principal balance of approximately
$540,015,496.11. A reserve account held for the benefit of the
Noteholders had a balance of approximately $16,784,391.34. Class
A-1 Notes were paid in full July 19, 1999. For the benefit of
holders of the Class A-3 and Class A-4 Notes, the Issuer is party
to an interest rate cap requiring the counterparty to make payments
to the Issuer in the event LIBOR exceeds 6.5% The Master Servicer
has prepared this Form 10-K on behalf of the Registrant in reliance
upon various no-action letters issued by the Securities and
Exchange Commission (the "Commission") to other trusts which are
substantially similar to the Trust. Items designated herein as
"Not Applicable" have been omitted as a result of this reliance.
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PART I
Item 1. Business.
Not Applicable.
Item 2. Properties.
Not Applicable.
Item 3. Legal Proceedings.
The Master Servicer is not aware of any material pending
legal proceedings involving either the Registrant, the
Trustee, the Seller or the Master Servicer with respect
to the Notes or the Registrant's property.
Item 4. Submission of Matters to a Vote of Security Holders.
No vote or consent of the holders of the Noteholders (the
"Noteholders") was solicited for any purpose during the
year ended December 31, 1999.
PART II
Item 5. Market for Registrant's Common Equity and Related
Stockholder Matters.
To the best knowledge of the Master Servicer, there is no
established public trading market for the Notes. Class
A-1 Noteholders were paid in full as of July 19, 1999.
As of March 1, 2000, there were 3 Class A-2 Noteholders,
13 Class A-3 Noteholders, 7 Class A-4 Noteholders, 1
Class A-5 Noteholder and 13 Class B-1 Noteholders, some
of whom may be holding Notes for the accounts of others.
The Class B-2 and Class C Notes, as well as the Series
1998-1 Certificate are held by the Seller.
Item 6. Selected Financial Data.
Not Applicable.
Item 7. Management's Discussion and Analysis of Financial
Condition and Results of Operations.
Not Applicable.
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Item 8. Financial Statements and Supplementary Data.
Not Applicable.
Item 9. Changes in and Disagreements with Accountants on
Accounting and Financial Disclosure.
None.
PART III
Item 10. Directors and Executive Officers of the Registrant.
Not Applicable.
Item 11. Executive Compensation.
Not Applicable.
Item 12. Security Ownership of Certain Beneficial Owners and
Management.
The following table sets forth (i) the name and address
of each entity which holds of record more than 5% of the
outstanding principal amount of the Class A-2, Class A-3,
Class A-4, Class A-5 or the Class B-1 Notes, (ii) the
principal amount of Notes owned by each, and (iii) the
percent that the principal amount of Notes owned
represents of the outstanding principal amount. The
information set forth in the table is based upon
information obtained by the Master Servicer from the
Trustee and from The Depository Trust Company as of March
1, 2000. The Master Servicer is not aware of any
Schedules 13D or 13G filed with the Securities and
Exchange Commission in respect of the Notes.
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Amount Owned
All dollar amounts are
in thousands
Name and Address Principal Percent
Class A-2 Noteholders
Chase Manhattan Bank $ 10,000 18.52%
4 New York Plaza - 13th Floor
New York, NY 10004
Investors Bank & Trust/M.F. Custody $ 3,000 5.56%
200 Clarendon Street
15th Floor Hancock Tower
Boston, MA 02116
State Street Bank and $ 41,000 75.93%
Trust Company
Global Corp. Action Unit JAB 5NW
1776 Heritage Drive
No. Quincy, MA 02171
Class A-3 Noteholders
Bank of New York $ 10,000 6.99%
925 Patterson Plank Road
Secaucus, NJ 07094
Bankers Trust Company $ 11,500 8.08%
c/o BT Services Tennessee Inc.
648 Grassmere Park Drive
Nashville, TN 37211
Bank One Trust Company, N.A. $ 18,000 12.59%
1900 Polaris Parkway, 4th Floor
Columbus, OH 43240
Boston Safe Deposit and $ 70,000 48.95%
Trust Company
c/o Mellon Bank N.A.
Three Mellon Bank Center
Room 153-3015
Pittsburgh, PA 15259
Citibank, N.A. $ 20,000 13.99%
P. O. Box 30576
Tampa, FL 33630-3576
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Amount Owned
All dollar amounts are
in thousands
Name and Address Principal Percent
Class A-4 Noteholders
Bankers Trust Company $ 30,832 38.14%
c/o BT Services Tennessee Inc.
648 Grassmere Park Drive
Nashville, TN 37211
The Bank of New York -- $ 15,000 18.56%
Banco Di Napoli
One Wall Street
New York, NY 10286
Boston Safe Deposit and $ 12,000 14.85%
Trust Company
c/o Mellon Bank N.A.
Three Mellon Bank Center
Room 153-3015
Pittsburgh, PA 15259
HSBC Bank USA/Republic $ 10,000 12.37%
Investment Account
One Hanson Place, Lower Level
Brooklyn, NY 11243
Investors Bank & Trust/M.F. Custody $ 7,000 8.66%
200 Clarendon Street
15th Floor Hancock Tower
Boston, MA 02116
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Amount Owned
All dollar amounts are
in thousands
Name and Address Principal Percent
Class A-5 Noteholder
Bank of New York $100,000 100.00%
925 Patterson Plank Road
Secaucus, NJ 07094
Class B-1 Noteholders
First Union National Bank $ 87,303 87.92%
1525 West W. T.
Harris Blvd., 3A4
Charlotte, NC 28288
Norwest Bank Minnesota, $ 5,100 5.14%
National Association
733 Marquette Avenue
Minneapolis, MN 55479-0056
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Item 13. Certain Relationships and Related Transactions.
None or Not Applicable.
PART IV
Item 14. Exhibits, Financial Statement Schedules, and Reports on
Form 8-K.
(a) List the following documents filed as a part of the
report:
(1) Financial Statements
Not Applicable.
(2) Financial Statement Schedules
Not Applicable.
(3) The Master Servicer is obligated to prepare
an Annual Statement to Noteholders for the
year ended December 31, 1999, and Independent
Public Accountants are required to prepare an
Annual Servicing Report pertaining to the
compliance of the Master Servicer with its
servicing obligations pursuant to the
Agreement. Copies of said documents are or
will be filed as exhibits to this Form 10-k
when they are available.
(b) The Registrant filed the following current reports
on Form 8-K for the fourth quarter of 1999:
Date of Reports Items Covered
October 18, 1999 Item 7 -- Statement to
November 17, 1999 Noteholders with respect
December 17, 1999 to distribution made on
October 18, 1999, November 17,
1999 and December 17, 1999.
(c) (1) Exhibit 99. Copy of Annual Statement to
Noteholders for the year 1999.
(d) Not Applicable.
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SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the
Securities Exchange Act of 1934, the Master Servicer has duly
caused this report to be signed on behalf of the Household
Automobile Revolving Trust I, Series 1998-1 by the undersigned,
thereunto duly authorized.
HOUSEHOLD FINANCE CORPORATION,
as Master Servicer of and on behalf of the
HOUSEHOLD AUTOMOBILE REVOLVING TRUST I,
SERIES 1998-1
(Registrant)
Date: March 27, 2000 By: /s/ P. D. Schwartz
P. D. Schwartz
Authorized Representative
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Exhibit Index
Exhibit No. Exhibit
99 Copy of Annual Statement to Noteholders for the year
1999.
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<TABLE>
<CAPTION>
AGGREGATE PAYMENT SCHEDULE
Household Finance Corporation
Household Auto Receivables Corporation
Household Automobile Revolving Trust I 1998-1
<S> <C>
Original Principal Class A
Class A-1 139,370,000
Class A-2 54,000,000
Class A-3 143,000,000
Class A-4 80,832,000
Class A-5 100,000,000
Number of Class A Bonds (000's)
Class A-1 139,370
Class A-2 54,000
Class A-3 143,000
Class A-4 80,832
Class A-5 100,000
Original Principal Class B
Class B-1 99,303,000.00
Class B-2 94,338,000.00
Number of Class B Bonds (000's)
Class B-1 99,303
Class B-2 94,338
Original Principal Class C
Class C 60,823,000.00
Number of Class C Bonds (000's)
Class C 60,823
Distribution Date 1999
CLASS A
Class A-1 Principal Distribution 127,887,012.71
Class A-1 Interest Distribution 2,066,779.99
Class A-2 Principal Distribution 18,145,186.98
Class A-2 Interest Distribution 2,983,803.86
Class A-3 Principal Distribution 0.00
Class A-3 Interest Distribution 8,138,093.14
Class A-4 Principal Distribution 0.00
Class A-4 Interest Distribution 4,641,105.62
Class A-5 Principal Distribution 30,812,818.16
Class A-5 Interest Distribution 4,806,030.43
CLASS B
Class B-1 Principal Distribution 32,165,434.65
Class B-1 Interest Distribution 5,912,059.67
Class B-2 Principal Distribution 30,557,312.92
Class B-2 Interest Distribution 5,507,843.09
CLASS C
Class C Principal Distribution 19,701,241.22
Class C Interest Distribution 3,552,123.07
</TABLE>
