<PAGE>
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
____________
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported) October 15, 1998
MBNA America Bank, National Association
(as Originator of the MBNA Master Credit Card Trust II)
-------------------------------------------------------
(Exact name of registrant as specified in its charter)
on behalf of
MBNA Master Credit Card Trust II
<TABLE>
<CAPTION>
<S> <C> <C>
United States 333-62025 51-0331454
- ---------------------------------------------- ------------------------ ----------------------
(State or Other Jurisdiction of Incorporation) (Commission File Number) (IRS Employer
Identification Number)
</TABLE>
Wilmington, Delaware 19884-0781
- --------------------------------------- ----------
(Address of Principal Executive Office) (Zip Code)
Registrant's telephone number, including area code (800) 362-6255
N/A
-------------------------------------------------------------
(Former Name or Former Address, if Changed Since Last Report)
<PAGE>
INFORMATION TO BE INCLUDED IN THE REPORT
Item 1. Not Applicable.
Item 2. Not Applicable.
Item 3. Not Applicable.
Item 4. Not Applicable.
Item 5. On October 15, 1998, the Registrant made available to prospective
investors a series term sheet setting forth a description of the
collateral pool and the proposed structure of $425,000,000 aggregate
principal amount of Class A Floating Rate Asset Backed Certificates,
Series 1998-I and $37,500,000 aggregate principal amount of Class B
Floating Rate Asset Backed Certificates, Series 1998-I, each of the
MBNA Master Credit Card Trust II. The series term sheet is attached
hereto as Exhibit 99.01.
Item 6. Not Applicable.
Item 7. Exhibits.
The following is filed as an Exhibit to this Report under Exhibit 99.01.
Exhibit 99.01 Series Term Sheet dated October 15, 1998, with respect to
the proposed issuance of the Class A Floating Rate Asset
Backed Certificates and the Class B Floating Rate Asset
Backed Certificates of the MBNA Master Credit Card Trust II,
Series 1998-I.
Item 8. Not Applicable.
Item 9. Not Applicable.
2
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as
amended, the registrant has duly caused this report to be signed on their behalf
by the undersigned hereunto duly authorized.
MBNA AMERICA BANK, NATIONAL ASSOCIATION,
on behalf of the MBNA
Master Credit Card Trust II
By: /s/ Jerry M. Hamstead
---------------------
Name: Jerry M. Hamstead
Title: First Vice President
3
<PAGE>
EXHIBIT INDEX
-------------
Exhibit Description
- ------- -----------
Exhibit 99.01 Series Term Sheet dated October 15, 1998, with respect to the
proposed issuance of the Class A Floating Rate Asset Backed
Certificates and the Class B Floating Rate Asset Backed
Certificates of the MBNA Master Credit Card Trust II, Series
1998-I.
4
<PAGE>
EXHIBIT 99.01
SUBJECT TO REVISION
Series Term Sheet Dated October 15, 1998
MBNA MASTER CREDIT CARD TRUST II
Issuer
MBNA AMERICA BANK, NATIONAL ASSOCIATION
Seller and Servicer
$425,000,000 CLASS A FLOATING RATE ASSET BACKED CERTIFICATES, SERIES 1998-I
$37,500,000 CLASS B FLOATING RATE ASSET BACKED CERTIFICATES, SERIES 1998-I
THE CLASS A FLOATING RATE ASSET BACKED CERTIFICATES, SERIES 1998-I (THE "CLASS
A CERTIFICATES") AND THE CLASS B FLOATING RATE ASSET BACKED CERTIFICATES,
SERIES 1998-I (THE "CLASS B CERTIFICATES" AND, TOGETHER WITH THE CLASS A
CERTIFICATES, THE "CERTIFICATES") REPRESENT INTERESTS IN THE MBNA MASTER CREDIT
CARD TRUST II (THE "TRUST") ONLY AND WILL NOT REPRESENT INTERESTS IN OR
OBLIGATIONS OF MBNA AMERICA BANK, NATIONAL ASSOCIATION ("MBNA") OR ANY MBNA
AFFILIATE. A CERTIFICATE IS NOT A DEPOSIT AND NEITHER THE CERTIFICATES NOR THE
UNDERLYING ACCOUNTS OR RECEIVABLES ARE INSURED OR GUARANTEED BY THE FEDERAL
DEPOSIT INSURANCE CORPORATION OR ANY OTHER GOVERNMENTAL AGENCY.
THIS SERIES TERM SHEET CONTAINS STRUCTURAL AND COLLATERAL INFORMATION ABOUT THE
CERTIFICATES; HOWEVER, THIS SERIES TERM SHEET DOES NOT CONTAIN COMPLETE
INFORMATION ABOUT THE CERTIFICATES. THE INFORMATION PROVIDED IN THIS SERIES
TERM SHEET IS PRELIMINARY AND WILL BE SUPERSEDED BY THE INFORMATION CONTAINED
IN THE PROSPECTUS SUPPLEMENT AND THE PROSPECTUS. ADDITIONAL INFORMATION WILL BE
CONTAINED IN THE PROSPECTUS SUPPLEMENT AND THE PROSPECTUS. PURCHASERS ARE URGED
TO READ BOTH THE PROSPECTUS SUPPLEMENT AND THE PROSPECTUS.
THIS SERIES TERM SHEET SHALL NOT CONSTITUTE AN OFFER TO SELL OR THE
SOLICITATION OF AN OFFER TO BUY, NOR SHALL THERE BE ANY SALE OF THESE
SECURITIES IN ANY STATE IN WHICH SUCH OFFER, SOLICITATION OR SALE WOULD BE
UNLAWFUL PRIOR TO REGISTRATION OR QUALIFICATION UNDER THE SECURITIES LAWS OF
ANY SUCH STATE. SALES OF THE CERTIFICATES MAY NOT BE CONSUMMATED UNLESS THE
PURCHASER HAS RECEIVED BOTH THE PROSPECTUS SUPPLEMENT AND THE PROSPECTUS.
Underwriters of the Class A Certificates
SALOMON SMITH BARNEY
BEAR, STEARNS & CO. INC.
CREDIT SUISSE FIRST BOSTON
LEHMAN BROTHERS
MERRILL LYNCH & CO.
Underwriter of the Class B Certificates
SALOMON SMITH BARNEY
<PAGE>
SUMMARY OF TERMS
THIS SERIES TERM SHEET WILL BE SUPERSEDED IN ITS ENTIRETY BY THE INFORMATION
PROVIDED IN THE PROSPECTUS SUPPLEMENT, THE PROSPECTUS AND THE SERIES 1998-I
SUPPLEMENT TO THE POOLING AND SERVICING AGREEMENT DATED AS OF AUGUST 4, 1994
(AS AMENDED FROM TIME TO TIME, THE "AGREEMENT") BETWEEN MBNA, AS SELLER (THE
"SELLER") AND AS SERVICER (THE "SERVICER") AND THE BANK OF NEW YORK, AS TRUSTEE
(THE "TRUSTEE").
OFFERED SECURITIES
The Trust is offering the Class A Certificates and the Class B Certificates as
part of Series 1998-I. The Certificates represent an interest in the assets of
the Trust.
The Class B Certificates are subordinated to the Class A Certificates.
INTEREST PAYMENTS
The Class A Certificates will accrue interest for each Interest Period at the
Class A Certificate Rate set on the related LIBOR Determination Date. The
"Class A Certificate Rate" is an annual rate equal to LIBOR plus %.
The Class B Certificates will accrue interest for each Interest Period at the
Class B Certificate Rate set on the related LIBOR Determination Date. The
"Class B Certificate Rate" is an annual rate equal to LIBOR plus %.
Interest accrued during each Interest Period will be due on each Distribution
Date. Any interest due but not paid on a Distribution Date will be payable on
the next Distribution Date together with additional interest at the applicable
Certificate Rate plus 2% per annum.
. A "Distribution Date" is the 15th day of each month, or if that day is not a
business day, the next business day. The first Distribution Date is December
15, 1998.
. Each "Interest Period" begins on and includes a Distribution Date and ends on
and excludes the next Distribution Date. However, the first Interest Period
will begin on and include October , 1998 (the "Closing Date") and end on and
exclude December 15, 1998, the first Distribution Date.
. LIBOR is the rate for deposits in U.S. dollars for a one-month period which
appears on the Dow Jones Telerate Page 3750 (or similar replacement page) as
of 11:00 a.m., London time, on the related LIBOR Determination Date.
. "LIBOR Determination Dates" are:
. October , 1998, for the period beginning on and including the Closing Date
and ending on and excluding November 16, 1998;
. November 12, 1998 for the period beginning on and including November 16,
1998 and ending on and excluding December 15, 1998; and
. the second London business day prior to the first day of each Interest
Period, for each Interest Period following the first Interest Period.
PRINCIPAL PAYMENTS
You are expected to receive payment of principal in full on the "Scheduled
Payment Date" which is October 15, 2001, or, if that date is not a business
day, the next business day. However, certain circumstances could cause
principal to be paid earlier or later, or in reduced amounts. No principal will
be paid to the Class B Certificateholders until the Class A Certificateholders
are paid in full.
The final payment of principal and interest on the Certificates will be made no
later than October 15, 2003, or, if that date is not a business day, the next
business day, called the "Legal Final Maturity" or the "Series 1998-I
Termination Date."
THE COLLATERAL INTEREST
The Trust is also issuing an interest in the assets of the Trust that is
subordinated to the Certificates called the "Collateral Interest." The initial
size of the Collateral Interest is $37,500,000, representing 7.5% of the
initial aggregate principal amount of the Certificates plus the Collateral
Interest. As a subordinated interest, the Collateral Interest is a form of
Credit Enhancement for the Certificates. The Collateral Interest Holder will
have voting and certain other rights as if the Collateral Interest were a
subordinated class of certificates.
2
<PAGE>
CREDIT ENHANCEMENT
Credit Enhancement for your Series is for your Series's benefit only, and you
are not entitled to the benefits of any credit enhancement available to other
Series.
Subordination of the Class B Certificates provides Credit Enhancement for the
Class A Certificates. Subordination of the Collateral Interest provides Credit
Enhancement for both the Class A Certificates and the Class B Certificates. The
Collateral Interest and the Class B Investor Interest must be reduced to zero
before the Class A Investor Interest will suffer any loss of principal. The
Collateral Interest must be reduced to zero before the Class B Investor
Interest will suffer any loss of principal.
OTHER INTERESTS IN THE TRUST
Other Series of Certificates
The Trust has issued other Series of certificates and expects to issue
additional Series of certificates. When issued by the Trust, the certificates
of each of those Series also represent an interest in the assets of the Trust.
The Trust may issue additional Series with terms that may be different from any
other Series without prior review or consent by any Certificateholders.
The Seller Interest
MBNA will own the "Seller Interest," which represents the remaining interest in
the assets of the Trust not represented by the Certificates, the Collateral
Interest and the other interests issued by the Trust. The Seller Interest does
not provide credit enhancement for your Series or any other Series.
INFORMATION ABOUT THE RECEIVABLES
The Trust assets include Receivables from certain MasterCard(R) and VISA(R)*
revolving credit card accounts selected from MBNA's credit card account
portfolio.
The Receivables consist of both Principal Receivables and Finance Charge
Receivables.
"Principal Receivables" are, generally, (a) amounts charged by cardholders for
goods and services and (b) cash advances.
"Finance Charge Receivables" are (a) the related finance charges and credit
card fees and (b) for your Series, certain amounts of fees, called Interchange,
collected through MasterCard and VISA and annual membership fees collected from
cardholders.
COLLECTIONS BY THE SERVICER
The Servicer will collect payments on the Receivables and will deposit those
collections in an account. The Servicer will keep track of those collections
that are Finance Charge Receivables and those collections that are Principal
Receivables.
ALLOCATIONS AND PAYMENTS TO YOU AND YOUR SERIES
Each month, the Servicer will allocate collections and the amount of
Receivables that are not collected and are written off as uncollectible, called
the Default Amount, among:
. your Series, based on the size of the Investor Interest (initially
$500,000,000);
. other outstanding Series, based on the size of their respective interests in
the Trust; and
. MBNA, based on the size of the Seller Interest.
The Trust assets allocated to your Series will be allocated to the following,
based on varying percentages:
. holders of the Class A Certificates, based on the Class A Investor Interest
(initially $425,000,000);
. holders of the Class B Certificates, based on the Class B Investor Interest
(initially $37,500,000); and
- --------
* MasterCard(R) and VISA(R) are federally registered servicemarks of MasterCard
International Inc. and Visa U.S.A., Inc., respectively.
3
<PAGE>
. the holder of the Collateral Interest, based on the Collateral Interest
(initially $37,500,000).
You are entitled to receive payments of interest and principal based upon
allocations to your Series. The Investor Interest, which is the basis for
allocations to your Series, is the sum of (a) the Class A Investor Interest,
(b) the Class B Investor Interest and (c) the Collateral Interest. The Class A
Investor Interest, the Class B Investor Interest and the Collateral Interest
will initially equal the outstanding principal amount of the Class A
Certificates, the Class B Certificates and the Collateral Interest. The
Investor Interest will decline as a result of principal payments and may
decline due to the writing off of Receivables or other reasons. If your
investor interest declines, amounts allocated and available for payment to your
Series and to you will be reduced.
ERISA CONSIDERATIONS
Subject to important considerations described in the Prospectus Supplement and
in the Prospectus, the Class A Certificates are eligible for purchase by
persons investing assets of employee benefit plans or individual retirement
accounts.
The Class B Certificates are not eligible for purchase by persons investing
assets of employee benefit plans or individual retirement accounts other than
an insurance company investing assets of its general account.
CERTIFICATE RATINGS
The Class A Certificates are required to be rated in the highest rating
category by at least one nationally recognized rating organization.
The Class B Certificates are required to be rated in one of the three highest
rating categories by at least one nationally recognized rating organization.
EXCHANGE LISTING
We will apply to list the Certificates on the Luxembourg Stock Exchange. We
cannot guaranty that the application for the listing will be accepted. You
should consult with Bankers Trust Luxembourg S.A., the Luxembourg listing agent
for the Certificates, 14 Boulevard F.D. Roosevelt, L-2450 Luxembourg, phone
number (352) 46 02 41, to determine whether or not the Certificates are listed
on the Luxembourg Stock Exchange.
4
<PAGE>
MBNA'S CREDIT CARD PORTFOLIO
GENERAL
The receivables (the "Receivables") conveyed or to be conveyed to the Trust
by MBNA pursuant to the Agreement have been or will be generated from
transactions made by holders of selected MasterCard and VISA credit card
accounts (the "Accounts"), including premium accounts and standard accounts,
from the portfolio of MasterCard and VISA accounts owned by the Seller (the
"Bank Portfolio").
DELINQUENCY AND GROSS CHARGE-OFF EXPERIENCE
The following tables set forth the delinquency and gross charge-off
experience for each of the periods shown for the Bank Portfolio of credit card
accounts. The Bank Portfolio's delinquency and gross charge-off experience is
comprised of segments which may, when taken individually, have delinquency and
gross charge-off characteristics different from those of the overall Bank
Portfolio of credit card accounts. As of the beginning of the day on September
22, 1998, the Receivables in the Trust Portfolio represented approximately 91%
of the Bank Portfolio. Because the Trust Portfolio is only a portion of the
Bank Portfolio, actual delinquency and gross charge-off experience with respect
to the Receivables may be different from that set forth below for the Bank
Portfolio. There can be no assurance that the delinquency and gross charge-off
experience for the Receivables in the future will be similar to the historical
experience of the Bank Portfolio set forth below.
DELINQUENCY EXPERIENCE
BANK PORTFOLIO
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
SEPTEMBER 30, DECEMBER 31,
----------------------- -----------------------------------------------------------------------
1998 1997 1996 1995
----------------------- ----------------------- ----------------------- -----------------------
PERCENTAGE PERCENTAGE PERCENTAGE PERCENTAGE
OF TOTAL OF TOTAL OF TOTAL OF TOTAL
RECEIVABLES RECEIVABLES RECEIVABLES RECEIVABLES RECEIVABLES RECEIVABLES RECEIVABLES RECEIVABLES
----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Receivables Outstand-
ing(1) $44,871,487 $41,567,876 $33,070,523 $24,269,670
Receivables Delinquent:
35 - 64 Days $896,864 2.00% $799,458 1.92% $619,940 1.87% $393,142 1.62%
65 - 94 Days 434,635 0.97 386,276 0.93 282,815 0.86 178,038 0.73
95 or more 941,961 2.10 833,957 2.01 606,650 1.83 352,813 1.46
----------- ------ ----------- ------ ----------- ------ ----------- ------
Total $2,273,460 5.07% $2,019,691 4.86% $1,509,405 4.56% $923,993 3.81%
=========== ====== =========== ====== =========== ====== =========== ======
</TABLE>
- --------
(1) The Receivables Outstanding on the accounts consist of all amounts due from
cardholders as posted to the accounts as the end of the period shown.
5
<PAGE>
GROSS CHARGE-OFF EXPERIENCE
BANK PORTFOLIO
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
NINE MONTHS YEAR ENDED DECEMBER 31,
ENDED SEPTEMBER 30, -------------------------------------
1998 1997 1996 1995
------------------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
Average Receivables Out-
standing(1)............ $42,523,688 $36,651,499 $27,781,061 $20,562,315
Total Gross Charge-
Offs(2)................ 1,780,061 1,897,006 1,193,375 686,687
Total Gross Charge-Offs
as a percentage of
Average Receivables
Outstanding(3)......... 5.58% 5.18% 4.30% 3.34%
</TABLE>
- --------
(1) Average Receivables Outstanding is the average of the daily receivable
balance during the period indicated.
(2) Total Gross Charge-Offs are total principal and interest charge-offs before
recoveries and do not include the amount of any reductions in Average
Receivables Outstanding due to fraud, returned goods, customer disputes or
other miscellaneous credit adjustments.
(3) The percentage reflected for the nine months ended September 30, 1998 is an
annualized figure.
THE RECEIVABLES
The Receivables conveyed to the Trust arise in Accounts selected from the
Bank Portfolio on the basis of criteria set forth in the Agreement as applied
on June 22, 1994 (the "Cut-Off Date") and, with respect to Additional Accounts,
as of the related date of their designation (the "Trust Portfolio").
The Receivables in the Trust Portfolio, as of the beginning of the day on
September 22, 1998, included $39,548,828,345 of Principal Receivables and
$813,893,626 of Finance Charge Receivables. The Accounts had an average
Principal Receivable balance of $1,411 and an average credit limit of $10,066.
The percentage of the aggregate total Receivable balance to the aggregate total
credit limit was 14.30%. The average age of the Accounts was approximately 36
months. As of the beginning of the day on September 22, 1998, cardholders whose
Accounts are included in the Trust Portfolio had billing addresses in all 50
States and the District of Columbia. As of the beginning of the day on
September 22, 1998, 42.12% of the Accounts were standard accounts and 57.88%
were premium accounts, and the aggregate Principal Receivable balances of
standard accounts and premium accounts, as a percentage of the total aggregate
Principal Receivables, were 29.87% and 70.13%, respectively.
The following tables summarize the Trust Portfolio by various criteria as of
the beginning of the day on September 22, 1998. Because the future composition
of the Trust Portfolio may change over time, these tables are not necessarily
indicative of the composition of the Trust Portfolio at any subsequent time.
COMPOSITION BY ACCOUNT BALANCE
TRUST PORTFOLIO
<TABLE>
<CAPTION>
NUMBER PERCENTAGE OF PERCENTAGE
OF TOTAL NUMBER OF TOTAL
ACCOUNT BALANCE RANGE ACCOUNTS OF ACCOUNTS RECEIVABLES RECEIVABLES
- --------------------- ---------- ------------- --------------- -----------
<S> <C> <C> <C> <C>
Credit Balance............ 370,760 1.3% $ (44,803,750) (0.1)%
No Balance................ 16,132,828 57.6 0 0.0
$ .01 - $ 5,000.00... 8,467,514 30.2 12,132,678,141 30.0
$ 5,000.01 - $10,000.00... 2,218,136 7.9 15,497,616,843 38.4
$10,000.01 - $15,000.00... 556,205 2.0 6,653,647,731 16.5
$15,000.01 - $20,000.00... 172,618 0.6 2,948,630,061 7.3
$20,000.01 - $25,000.00... 66,604 0.2 1,482,093,000 3.7
$25,000.01 or More........ 50,697 0.2 1,692,859,945 4.2
---------- ----- --------------- -----
Total................... 28,035,362 100.0% $40,362,721,971 100.0%
========== ===== =============== =====
</TABLE>
6
<PAGE>
COMPOSITION BY CREDIT LIMIT
TRUST PORTFOLIO
<TABLE>
<CAPTION>
PERCENTAGE OF PERCENTAGE
NUMBER TOTAL NUMBER OF TOTAL
CREDIT LIMIT RANGE OF ACCOUNTS OF ACCOUNTS RECEIVABLES RECEIVABLES
- ------------------ ----------- ------------- --------------- -----------
<S> <C> <C> <C> <C>
Less than or equal to
$5,000.00.............. 6,246,597 22.3% $ 4,154,407,587 10.3%
$ 5,000.01 -
$10,000.00............ 10,574,622 37.7 14,495,210,603 35.9
$10,000.01 -
$15,000.00............ 6,267,122 22.4 9,821,136,335 24.3
$15,000.01 -
$20,000.00............ 2,536,324 9.0 4,891,038,689 12.1
$20,000.01 -
$25,000.00............ 1,515,718 5.4 3,488,470,156 8.7
$25,000.01 or More...... 894,979 3.2 3,512,458,601 8.7
---------- ----- --------------- -----
Total................. 28,035,362 100.0% $40,362,721,971 100.0%
========== ===== =============== =====
</TABLE>
COMPOSITION BY PERIOD OF DELINQUENCY
TRUST PORTFOLIO
<TABLE>
<CAPTION>
PERIOD OF DELINQUENCY PERCENTAGE OF PERCENTAGE
(DAYS CONTRACTUALLY NUMBER TOTAL NUMBER OF TOTAL
DELINQUENT) OF ACCOUNTS OF ACCOUNTS RECEIVABLES RECEIVABLES
- --------------------- ----------- ------------- --------------- -----------
<S> <C> <C> <C> <C>
Not Delinquent............ 26,959,493 96.1% $35,187,348,642 87.2%
Up to 34 Days............. 636,626 2.3 2,982,565,548 7.4
35 to 64 Days............. 191,663 0.7 931,064,524 2.3
65 to 94 Days............. 86,012 0.3 409,939,583 1.0
95 or More Days........... 161,568 0.6 851,803,674 2.1
---------- ----- --------------- -----
Total................... 28,035,362 100.0% $40,362,721,971 100.0%
========== ===== =============== =====
</TABLE>
COMPOSITION BY ACCOUNT AGE
TRUST PORTFOLIO
<TABLE>
<CAPTION>
PERCENTAGE OF PERCENTAGE
NUMBER TOTAL NUMBER OF TOTAL
ACCOUNT AGE OF ACCOUNTS OF ACCOUNTS RECEIVABLES RECEIVABLES
- ----------- ----------- -------------- --------------- -----------
<S> <C> <C> <C> <C>
Not More Than 6 Months.. 2,506,392 8.9% $ 3,025,931,017 7.5%
Over 6 Months to 12
Months................. 2,962,901 10.6 2,983,836,038 7.4
Over 12 Months to 24
Months................. 6,285,921 22.4 6,585,628,453 16.3
Over 24 Months to 36
Months................. 6,051,408 21.6 6,867,548,641 17.0
Over 36 Months to 48
Months................. 4,488,953 16.0 6,043,616,701 15.0
Over 48 Months to 60
Months................. 2,221,206 7.9 5,387,284,959 13.3
Over 60 Months to 72
Months................. 664,815 2.4 1,532,331,719 3.8
Over 72 Months.......... 2,853,766 10.2 7,936,544,443 19.7
---------- ----- --------------- -----
Total................. 28,035,362 100.0% $40,362,721,971 100.0%
========== ===== =============== =====
</TABLE>
7
<PAGE>
GEOGRAPHIC DISTRIBUTION OF ACCOUNTS
TRUST PORTFOLIO
<TABLE>
<CAPTION>
PERCENTAGE OF PERCENTAGE
NUMBER TOTAL NUMBER OF TOTAL
STATE OF ACCOUNTS OF ACCOUNTS RECEIVABLES RECEIVABLES
- ----- ----------- ------------- --------------- -----------
<S> <C> <C> <C> <C>
California................ 3,022,536 10.8% $ 5,411,016,609 13.4%
Texas..................... 1,776,993 6.3 2,950,834,467 7.3
New York.................. 2,110,200 7.5 2,945,716,716 7.3
Florida................... 1,417,846 5.1 2,237,457,306 5.5
Pennsylvania.............. 1,617,078 5.8 1,787,711,204 4.4
New Jersey................ 1,129,014 4.0 1,699,143,927 4.2
Illinois.................. 1,135,083 4.0 1,561,913,423 3.9
Ohio...................... 1,245,769 4.4 1,427,824,169 3.5
Maryland.................. 793,538 2.8 1,325,723,076 3.3
Michigan.................. 971,758 3.5 1,219,942,918 3.0
Other..................... 12,815,547 45.8 17,795,438,156 44.2
---------- ----- --------------- -----
Total................... 28,035,362 100.0% $40,362,721,971 100.0%
========== ===== =============== =====
</TABLE>
PAYMENT RATES
The following table sets forth the highest and lowest cardholder monthly
payment rates for the Bank Portfolio during any month in the period shown and
the average cardholder monthly payment rates for all months during the periods
shown, in each case calculated as a percentage of total opening monthly account
balances during the periods shown. Payment rates shown in the table are based
on amounts which would be deemed payments of Principal Receivables and Finance
Charge Receivables with respect to the Accounts.
CARDHOLDER MONTHLY PAYMENT RATES
BANK PORTFOLIO
<TABLE>
<CAPTION>
NINE MONTHS
ENDED YEAR ENDED DECEMBER 31,
SEPTEMBER 30, -----------------------
1998 1997 1996 1995
------------- ------- ------- -------
<S> <C> <C> <C> <C>
Lowest Month...................... 12.26% 11.30% 10.69% 10.22%
Highest Month..................... 13.91% 13.15% 11.56% 11.34%
Monthly Average................... 13.28% 12.20% 11.19% 10.79%
</TABLE>
RECEIVABLE YIELD CONSIDERATIONS
The gross revenues from finance charges and fees billed to accounts in the
Bank Portfolio for each of the three calendar years contained in the period
ended December 31, 1997 and the nine calendar months contained in the period
ended September 30, 1998 are set forth in the following table.
The historical yield figures in the following table are calculated on an
accrual basis. Collections of Receivables included in the Trust will be on a
cash basis and may not reflect the historical yield experience in the table.
During periods of increasing delinquencies or periodic payment deferral
programs, accrual yields may exceed cash amounts accrued and billed to
cardholders. Conversely, cash yields may exceed accrual yields as amounts
collected in a current period may include amounts accrued during prior periods.
However, the Seller believes that during the three calendar years contained in
the period ended December 31, 1997 and the nine calendar months contained in
the period ended September 30, 1998, the yield on an accrual basis closely
approximated the yield on a cash basis. The yield on both an accrual and a cash
basis will be affected by numerous factors, including the monthly periodic
finance charges on the Receivables, the amount of the annual membership fees
and other fees, changes in the delinquency rate on the Receivables and the
percentage of cardholders who pay their balances in full each month and do not
incur monthly periodic finance charges.
8
<PAGE>
BANK PORTFOLIO YIELD
<TABLE>
<CAPTION>
NINE MONTHS
ENDED YEAR ENDED DECEMBER 31,
SEPTEMBER 30, -------------------------------
1998 1997 1996 1995
------------- --------- --------- ---------
<S> <C> <C> <C> <C>
Average Account Monthly Accrued
Finance
Charges and Fees(1)(2)......... $ 27.41 $ 25.58 $ 24.27 $ 23.70
Average Account Balance(3)..... $1,886.30 $1,822.14 $1,738.50 $1,718.08
Yield from Finance Charges and
Fees(4)....................... 17.44% 16.85% 16.75% 16.55%
Yield from Interchange(5)...... 1.27% 1.23% 1.17% 1.20%
Yield from Finance Charges,
Fees and Interchange(6)....... 18.71% 18.08% 17.92% 17.75%
</TABLE>
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(1) Finance Charges and Fees are comprised of monthly periodic finance charges
and other credit card fees.
(2) Average Account Monthly Accrued Finance Charges and Fees are presented net
of adjustments made pursuant to MBNA's normal servicing procedures,
including removal of incorrect or disputed monthly periodic finance
charges.
(3) Average Account Balance includes purchases, cash advances and accrued and
unpaid monthly periodic finance charges and other charges and is calculated
based on the average of the account balances during the periods shown for
accounts with charging privileges.
(4) Yield from Finance Charges and Fees is the result of dividing the
annualized Average Account Monthly Accrued Finance Charges and Fees by the
Average Account Balance for the period.
(5) Yield from Interchange is the result of dividing annualized revenue
attributable to Interchange received during the period by the Average
Account Balance for the period. The amount of Interchange for each of the
periods indicated above has been estimated.
(6) The percentage reflected for the nine months ended September 30, 1998 is an
annualized figure.
The revenue for the Bank Portfolio of credit card accounts shown in the above
table is comprised of monthly periodic finance charges, credit card fees and
Interchange. These revenues vary for each account based on the type and volume
of activity for each account. Because the Trust Portfolio is only a portion of
the Bank Portfolio, actual yield with respect to Receivables may be different
from that set forth above for the Bank Portfolio.
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