<PAGE> 1
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OF THE
SECURITIES EXCHANGE ACT OF 1934
DATE OF REPORT (DATE OF EARLIEST EVENT REPORTED): MARCH 17, 1998
DISCOVER CARD MASTER TRUST I
--------------------------------------------------
(EXACT NAME OF REGISTRANT AS SPECIFIED IN CHARTER)
DELAWARE 0-23108 51-0020270
-------- ------- ----------
(STATE OF (COMMISSION (IRS EMPLOYER
ORGANIZATION) FILE NUMBER) IDENTIFICATION NO.)
C/O GREENWOOD TRUST COMPANY
12 READ'S WAY
NEW CASTLE, DELAWARE 19720
- --------------------------- -----
(ADDRESS OF PRINCIPAL EXECUTIVE OFFICES) (ZIP CODE)
REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE: (302) 323-7184
--------------
FORMER NAME OR FORMER ADDRESS, IF CHANGED SINCE LAST REPORT: NOT APPLICABLE
<PAGE> 2
ITEM 5. OTHER EVENTS
SERIES 1998-3. ON MARCH 17, 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 $500,000,000 AGGREGATE PRINCIPAL
AMOUNT OF SERIES 1998-3 FLOATING RATE CLASS A CREDIT CARD PASS-THROUGH
CERTIFICATES AND $26,316,000 AGGREGATE PRINCIPAL AMOUNT OF SERIES 1998-3
FLOATING RATE CLASS B CREDIT CARD PASS-THROUGH CERTIFICATES OF DISCOVER CARD
MASTER TRUST I. THE SERIES TERM SHEET IS ATTACHED HERETO AS EXHIBIT 99.
ITEM 7. EXHIBITS
<TABLE>
<CAPTION>
EXHIBIT NO. DESCRIPTION
- ----------- -----------
<S> <C>
EXHIBIT 99 SERIES TERM SHEET DATED MARCH 17, 1998, WITH RESPECT TO THE
PROPOSED ISSUANCE OF THE FLOATING RATE CLASS A CREDIT CARD
PASS-THROUGH CERTIFICATES AND THE FLOATING RATE CLASS B CREDIT
CARD PASS-THROUGH CERTIFICATES OF DISCOVER CARD MASTER TRUST I,
SERIES 1998-3.
</TABLE>
PAGE 2
<PAGE> 3
SIGNATURES
PURSUANT TO THE REQUIREMENTS OF THE SECURITIES EXCHANGE ACT OF 1934, THE
REGISTRANT HAS DULY CAUSED THIS REPORT TO BE SIGNED ON ITS BEHALF BY THE
UNDERSIGNED THEREUNTO DULY AUTHORIZED.
DISCOVER CARD MASTER TRUST I
(REGISTRANT)
BY: GREENWOOD TRUST COMPANY
(ORIGINATOR OF THE TRUST)
DATE: MARCH 17, 1998 BY: /S/ JOHN J. COANE
--------------------------------------
JOHN J. COANE
VICE PRESIDENT, DIRECTOR OF ACCOUNTING
AND TREASURER
PAGE 3
<PAGE> 4
INDEX TO EXHIBITS
<TABLE>
<CAPTION>
EXHIBIT DESCRIPTION PAGE
- ------- ----------- ----
<S> <C> <C>
EXHIBIT 99 SERIES TERM SHEET DATED MARCH 17, 1998, WITH RESPECT TO 5
THE PROPOSED ISSUANCE OF THE FLOATING RATE CLASS A CREDIT
CARD PASS-THROUGH CERTIFICATES AND THE FLOATING RATE
CLASS B CREDIT CARD PASS-THROUGH CERTIFICATES OF DISCOVER
CARD MASTER TRUST I, SERIES 1998-3.
</TABLE>
PAGE 4
<PAGE> 1
Exhibit 99
SUBJECT TO REVISION
SERIES TERM SHEET DATED MARCH 17, 1998
DISCOVER(R) CARD MASTER TRUST I, SERIES 1998-3
$500,000,000 FLOATING RATE CLASS A CREDIT CARD PASS-THROUGH CERTIFICATES
$26,316,000 FLOATING RATE CLASS B CREDIT CARD PASS-THROUGH CERTIFICATES
GREENWOOD TRUST COMPANY
MASTER SERVICER, SERVICER AND SELLER
THE INVESTOR CERTIFICATES REPRESENT FRACTIONAL UNDIVIDED INTERESTS IN THE
DISCOVER CARD MASTER TRUST I (THE "TRUST") AND DO NOT REPRESENT INTERESTS IN OR
OBLIGATIONS OF GREENWOOD TRUST COMPANY ("GREENWOOD"). NEITHER THE INVESTOR
CERTIFICATES NOR THE UNDERLYING ACCOUNTS OR RECEIVABLES ARE INSURED OR
GUARANTEED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION OR ANY GOVERNMENT
AGENCY.
THIS SERIES TERM SHEET CONTAINS STRUCTURAL AND COLLATERAL INFORMATION WITH
RESPECT TO THE SERIES 1998-3 INVESTOR CERTIFICATES; HOWEVER, THIS SERIES TERM
SHEET DOES NOT CONTAIN COMPLETE INFORMATION WITH RESPECT TO THE OFFERING OF THE
SERIES 1998-3 INVESTOR CERTIFICATES. THE INFORMATION HEREIN 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. INFORMATION REGARDING PAST
PERFORMANCE CONTAINED HEREIN IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS.
PRICE AND AVAILABILITY OF THE SERIES 1998-3 INVESTOR CERTIFICATES ARE SUBJECT
TO CHANGE WITHOUT NOTICE.
THIS SERIES TERM SHEET HAS BEEN PREPARED SOLELY FOR INFORMATIONAL PURPOSES
AND IS NOT AN OFFER TO BUY OR SELL OR THE SOLICITATION OF AN OFFER TO BUY OR
SELL ANY SECURITY OR INSTRUMENT OR TO PARTICIPATE IN ANY PARTICULAR TRADING
STRATEGY. THERE SHALL BE NO OFFER, SOLICITATION OR 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 SERIES 1998-3 INVESTOR CERTIFICATES MAY NOT BE CONSUMMATED UNLESS
THE PURCHASER HAS RECEIVED BOTH THE PROSPECTUS SUPPLEMENT AND THE PROSPECTUS.
THE UNDERWRITERS AND OTHERS ASSOCIATED WITH THEM MAY HAVE POSITIONS IN, AND MAY
EFFECT TRANSACTIONS IN, SECURITIES AND INSTRUMENTS OF THE TRUST OR GREENWOOD
AND MAY ALSO PERFORM OR SEEK TO PERFORM INVESTMENT BANKING SERVICES FOR THE
TRUST AND GREENWOOD.
MORGAN STANLEY DEAN WITTER
CHASE SECURITIES INC.
FIRST UNION CAPITAL MARKETS CORP.
NATIONSBANC MONTGOMERY SECURITIES LLC
NOT FOR DISTRIBUTION TO PRIVATE CUSTOMERS AS DEFINED BY THE U.K.
SECURITIES AND FUTURES AUTHORITY.
<PAGE> 2
This Series Term Sheet will be superseded in its entirety by the information
appearing in the Prospectus Supplement, the Prospectus and the Series 1998-3
Supplement to the Pooling and Servicing Agreement, dated as of October 1, 1993,
as amended, between Greenwood and U.S. Bank National Association d/b/a First
Bank National Association (successor trustee to Bank of America Illinois,
formerly Continental Bank, National Association), as Trustee (the "Series
Supplement").
<TABLE>
<CAPTION>
<S> <C>
TITLE OF SECURITIES .................... Discover Card Master Trust I, Series
1998-3 Floating Rate Class A Credit
Card Pass-Through Certificates
(the "Class A Certificates") and
Discover Card Master Trust I, Series
1998-3 Floating Rate Class B Credit
Card Pass-Through Certificates (the
"Class B Certificates," and together
with the Class A Certificates, the
"Investor Certificates").
INTEREST ON INVESTOR CERTIFICATES ...... Class A Certificates: LIBOR plus
____% per annum.
Class B Certificates: LIBOR plus
____% per annum.
Interest on the Investor Certificates
will be calculated on the basis of the
actual number of days elapsed
and a 360-day year; payable on the
15th day of each month (or, if such
day is not a business day, the next
succeeding business day), commencing
in April 1998.
"LIBOR" will mean the London
interbank offered rate for
one-month United States dollar
deposits, determined two business days
prior to the commencement of each
interest accrual period.
PRINCIPAL ON INVESTOR CERTIFICATES ..... The principal of the Class A
Certificates and the Class B
Certificates is scheduled to be paid
on the Class A Expected Final Payment
Date and the Class B Expected Final
Payment Date, respectively, but may be
paid earlier or later, or monthly,
under certain circumstances.
SERIES CUT-OFF DATE .................... March 1, 1998.
CLASS A EXPECTED FINAL PAYMENT DATE .... The Distribution Date in March 2003.
"Distribution Date" will mean the
15th calendar day of each month, or if
such day is not a business day, the
next succeeding business day,
commencing in April 1998.
CLASS B EXPECTED FINAL PAYMENT DATE .... The Distribution Date in April 2003.
SERIES TERMINATION DATE ................ The first business day following the
Distribution Date in September 2005.
SUBORDINATION OF CLASS B CERTIFICATES .. The Class B Certificates are
subordinated in right of payment to
the Class A Certificates, to the
extent of the Available Subordinated
Amount at the time any such
subordinated payment is made.
</TABLE>
2
<PAGE> 3
<TABLE>
<CAPTION>
<S> <C>
AVAILABLE SUBORDINATED AMOUNT .......... Initially $65,789,500, which may be
reduced, reinstated or increased from
time to time, and which amount will
be increased by $2,631,580 upon the
occurrence of a Supplemental Credit
Enhancement Event (as defined below).
The Available Subordinated Amount
will be increased following an
Effective Alternative Credit Support
Election (as defined below) by (i)
$26,315,800 prior to the occurrence
of a Supplemental Credit Enhancement
Event or (ii) $23,684,220 following
the occurrence of a Supplemental
Credit Enhancement Event.
"Effective Alternative Credit Support
Election" will mean an effective
election made by Greenwood under the
terms of the Series Supplement to
increase the amount on deposit in the
Credit Enhancement Account (as
defined below in Credit Enhancement).
A "Supplemental Credit Enhancement
Event" will occur the first
time the long-term debt or deposit
rating of Greenwood (or an additional
seller, if any) is withdrawn or
reduced below BBB - by Standard &
Poor's Ratings Services.
CREDIT ENHANCEMENT ..................... Credit Enhancement initially will
consist solely of a cash collateral
account for the exclusive direct
benefit of the holders of the Class B
Certificates (the "Credit Enhancement
Account").
The initial amount of the Credit
Enhancement is $39,473,700. The
maximum amount of Credit Enhancement
as of any Distribution Date will be
the greater of (i) $5,263,160 and (ii)
an amount equal to 7.5% of the Series
Investor Interest (as defined below)
as of the last day of the related Due
Period (as defined below) (or,
following an Effective Alternative
Credit Support Election, the greater
of $5,263,160 and an amount equal to
12.5% of the Series Investor Interest
as of the last day of the related Due
Period), subject to certain conditions
and limitations.
"Series Investor Interest" will mean
$526,316,000 minus (i) the aggregate
amount on deposit with respect to
principal collections for the benefit
of holders of the Class A Certificates
and Class B Certificates (after giving
effect to losses of principal on
investments of funds), (ii) the
aggregate amount of principal paid to
holders of the Class A Certificates
and Class B Certificates and (iii) the
aggregate amount of unreimbursed
investor losses resulting from
accounts in which the receivables have
been charged-off as uncollectible
(after giving effect to all provisions
in the Series Supplement to reimburse
such charged-off amounts).
</TABLE>
3
<PAGE> 4
<TABLE>
<CAPTION>
<S> <C>
"Due Period" will mean, with respect
to any Distribution Date, the
calendar month next preceding the
calendar month in which such
Distribution Date occurs.
THE RECEIVABLES ........................ The receivables in the Accounts (as
defined below) as of March 1, 1998
totaled $20,006,241,003.28.
GROUP EXCESS SPREAD .................... The Investor Certificates initially
will be included in the "Group One"
group of series. The three-month
rolling average Group Excess Spread
Percentage (as defined below) for
Group One has declined from 4.57% for
the Distribution Date in March 1997 to
2.86% for the Distribution Date in
March 1998, primarily as a result of
increases in the amount of receivables
which have been charged-off as
uncollectible.
"Group Excess Spread Percentage" for
any Distribution Date is a percentage
calculated by multiplying (i) an
amount for all series in Group One
equal to (a) the sum of finance charge
collections, investment income and
other collections allocable to each
such series, minus (b) the sum of
certificate interest and certain fees
payable with respect to each such
series and the amount of receivables
allocable to each such series which
have been charged-off as
uncollectible, by (ii) twelve, and
then dividing the product by an amount
equal to the sum of all investor
interests for each series in Group One
(in each case for the Distribution
Date).
RATING OF THE INVESTOR CERTIFICATES .... It is a condition of issuance that the
Class A Certificates be rated in the
highest rating category and that the
Class B Certificates be rated at least
"A" or the equivalent by Moody's
Investors Service and Standard &
Poor's Ratings Services.
ERISA CONSIDERATIONS ................... It is expected that the assets of an
ERISA plan that invests in the Class A
Certificates would not be deemed to
include an interest in the assets of
the Trust. The Class B Certificates
may not be acquired by any employee
benefit plan that is subject to ERISA.
LISTING ................................ Application will be made to list the
Investor Certificates on the
Luxembourg Stock Exchange.
</TABLE>
COMPOSITION OF THE ACCOUNTS
Information concerning the composition of the accounts from which
receivables are included in the Trust (the "Accounts") is set forth below.
4
<PAGE> 5
GEOGRAPHIC DISTRIBUTION. As of March 1, 1998, the five states with the
largest receivables balances were as follows:
<TABLE>
<CAPTION>
STATE PERCENTAGE OF TOTAL RECEIVABLES
----- BALANCE IN THE ACCOUNTS
-----------------------
<S> <C>
California............... 11.7%
Texas.................... 9.3%
New York................. 6.8%
Florida.................. 5.9%
Illinois................. 4.8%
</TABLE>
CREDIT LIMIT INFORMATION. Credit limit information as of March 1, 1998
with respect to the Accounts is as follows:
<TABLE>
<CAPTION>
PERCENTAGE
RECEIVABLES OF TOTAL
OUTSTANDING RECEIVABLES
CREDIT LIMIT (000'S) OUTSTANDING
- ------------ ----------- -----------
<S> <C> <C>
Less than or equal to $1,000.00.... $ 383,445 1.9%
$1,000.01 to $2,000.00............. $ 2,908,360 14.5%
$2,000.01 to $3,000.00............. $ 3,012,781 15.1%
Over $3,000.00..................... $13,701,655 68.5%
----------- -----
Total............................ $20,006,241 100.0%
=========== =====
</TABLE>
SEASONING. As of March 1, 1998, 84.0% of the Accounts were at least 24
months old. The distribution of the age of Accounts as of March 1, 1998 was as
follows:
<TABLE>
<CAPTION>
PERCENTAGE PERCENTAGE
AGE OF ACCOUNTS OF ACCOUNTS OF BALANCES
--------------- ----------- -----------
<S> <C> <C>
Less than 12 Months...... 4.8% 4.0%
12 to 23 Months.......... 11.2% 11.7%
24 to 35 Months.......... 16.6% 17.5%
36 Months and Greater 67.4% 66.8%
---------- --------
100.0% 100.0%
========== ========
</TABLE>
SUMMARY CURRENT DELINQUENCY INFORMATION. Current delinquency information
as of March 1, 1998 with respect to the Accounts is summarized as follows:
<TABLE>
<CAPTION>
AGGREGATE
BALANCES PERCENTAGE
PAYMENT STATUS (000'S) OF BALANCES
-------------- ----------- -----------
<S> <C> <C>
Current........ $17,287,575 86.4%
1 to 29 Days... $ 1,193,271 6.0%
30 to 59 Days.. $ 561,303 2.8%
60 to 89 Days.. $ 346,830 1.7%
90 to 119 Days. $ 262,444 1.3%
120 to 149 Days $ 176,252 0.9%
150 to 179 Days $ 178,566 0.9%
----------- -----------
$20,006,241 100.0%
=========== ===========
</TABLE>
5
<PAGE> 6
COMPOSITION AND HISTORICAL PERFORMANCE
OF THE DISCOVER CARD PORTFOLIO
GEOGRAPHIC DISTRIBUTION. The Discover Card Portfolio is not concentrated
geographically. As of November 30, 1997, the five states with the largest
receivables balances were as follows:
<TABLE>
<CAPTION>
PERCENTAGE OF TOTAL RECEIVABLES BALANCE
OF DISCOVER CARD PORTFOLIO
STATE AS OF NOVEMBER 30, 1997
- ----- ---------------------------------------
<S> <C>
California 11.3%
Texas..... 9.3%
New York.. 6.7%
Florida... 5.9%
Illinois.. 5.0%
</TABLE>
No other state accounted for more than 5% of the total receivables balance
of the Discover Card Portfolio as of November 30, 1997.
CREDIT LIMIT INFORMATION. Credit limit information as of November 30,
1997 with respect to the Discover Card Portfolio is summarized as follows:
<TABLE>
<CAPTION>
PERCENTAGE
RECEIVABLES OF TOTAL
OUTSTANDING RECEIVABLES
CREDIT LIMIT (000'S) OUTSTANDING
- ------------ ------------- -----------
<S> <C> <C>
Less than or equal to $1,000.00 $ 528,792 1.8%
$1,000.01 to $2,000.00......... 4,088,654 13.7%
$2,000.01 to $3,000.00......... 3,927,544 13.2%
Over $3,000.00................. $21,207,550 71.3%
------------- -----------
Total.......................... $29,752,540 100.0%
============= ===========
</TABLE>
SEASONING. As of November 30, 1997, 84.5% of the accounts in the Discover
Card Portfolio were at least 24 months old. The distribution of the age of
accounts in the Discover Card Portfolio as of November 30, 1997 was as follows:
<TABLE>
<CAPTION>
PERCENTAGE PERCENTAGE
AGE OF ACCOUNTS OF ACCOUNTS OF BALANCES
- --------------- ----------- -----------
<S> <C> <C>
Less than 12 Months.. 6.6% 5.0%
12 to 23 Months...... 8.9% 9.3%
24 to 35 Months...... 11.7% 12.4%
36 Months and Greater 72.8% 73.3%
----------- -----------
100.0% 100.0%
=========== ===========
</TABLE>
6
<PAGE> 7
SUMMARY YIELD INFORMATION. The annualized aggregate monthly yield for the
Discover Card Portfolio is summarized as follows:
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31,
ELEVEN MONTHS ENDED ----------------------------
NOVEMBER 30, 1997 1996 1995 1994
------------------- -------- -------- --------
<S> <C> <C> <C> <C>
Aggregate Monthly Yields (1)
Excluding Recoveries (2) ....... 18.19% 17.72% 16.95% 16.65%
Including Recoveries (3)........ 18.90% 18.20% 17.39% 17.07%
</TABLE>
___________________________________
(1) Monthly Yield is calculated by dividing monthly finance charges billed by
beginning monthly balance. Monthly finance charges include periodic
finance charges, cash advance item charges, late fees, and as of March 1,
1996, overlimit fees, but exclude certain other items, such as annual
membership fees, if any, which are included in finance charge receivables
for the Trust. Aggregate Monthly Yield is the average of monthly yields
annualized for each period shown.
(2) Monthly Yield excluding any recoveries received with respect to
charged-off accounts.
(3) Monthly Yield including recoveries received with respect to charged-off
accounts. Recoveries received with respect to charged-off accounts (other
than the proceeds of sales of charged-off accounts that have been removed
from the Trust) are included in the Trust and are treated as finance
charge collections.
SUMMARY CURRENT DELINQUENCY INFORMATION. Current delinquency information
as of November 30, 1997 with respect to the Discover Card Portfolio is
summarized as follows:
<TABLE>
<CAPTION>
AGGREGATE
BALANCES PERCENTAGE
PAYMENT STATUS (000'S) OF BALANCES
- -------------- ------------ -----------
<S> <C> <C>
Current........ $25,546,310 85.8%
1 to 29 Days... $ 2,194,931 7.4%
30 to 59 Days.. $ 658,518 2.2%
60 to 89 Days.. $ 466,870 1.6%
90 to 119 Days. $ 353,093 1.2%
120 to 149 Days $ 294,001 1.0%
150 to 179 Days $ 238,817 0.8%
------------ -----------
$29,752,540 100.0%
============ ===========
</TABLE>
7
<PAGE> 8
SUMMARY HISTORICAL DELINQUENCY INFORMATION. Historical delinquency
information with respect to the Discover Card Portfolio is summarized as
follows:
<TABLE>
<CAPTION>
AVERAGE OF TWELVE MONTHS ENDED DECEMBER 31,
AVERAGE OF ELEVEN MONTHS --------------------------------------------------------
ENDED NOVEMBER 30, 1997 1996 1995
--------------------------- --------------------------- ---------------------------
DELINQUENT DELINQUENT DELINQUENT
AMOUNT AMOUNT AMOUNT
(000'S) PERCENTAGE(1) (000'S) PERCENTAGE (1) (000'S) PERCENTAGE (1)
------------ ------------- ----------- -------------- ----------- --------------
<S> <C> <C> <C> <C> <C> <C>
30-59 Days.......... $ 743,464 2.6% $ 680,645 2.7% $ 568,382 2.6%
60-89 Days.......... $ 432,410 1.5% $ 361,992 1.4% $ 276,821 1.3%
90-179 Days......... $ 803,204 2.8% $ 593,661 2.3% $ 403,134 1.8%
------------ ------------- --- ------- -------------- ----------- --------------
Total............. $1,979,078 6.9% $1,636,298 6.4% $1,248,337 5.7%
============ ============= =========== ============== =========== ==============
<CAPTION>
AVERAGE OF TWELVE MONTHS ENDED DECEMBER 31,
--------------------------------------------------------
1994
--------------------------------
DELINQUENT
AMOUNT
(000'S) PERCENTAGE(1)
----------------- -------------
<S> <C> <C>
30-59 Days.......... $405,942 2.2%
60-89 Days.......... $193,582 1.1%
90-179 Days......... $282,080 1.5%
---------------- -------------
Total............. $881,604 4.8%
================ =============
</TABLE>
_________________________
(1) The percentages are the result of dividing Delinquent Amount by Average
Receivables Outstanding for the applicable period. Delinquent Amount is
the average of the monthly ending balances of delinquent accounts during
the periods indicated. Average Receivables Outstanding is the average of
the monthly average amount of receivables outstanding during the periods
indicated.
SUMMARY CHARGE-OFF INFORMATION. Charge-off information with respect to
the Discover Card Portfolio is summarized as follows:
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31,
ELEVEN MONTHS ENDED ----------------------------------------
NOVEMBER 30, 1997 1996 1995 1994
------------------- ------------ ------------ ------------
(DOLLARS IN THOUSANDS)
<S> <C> <C> <C> <C>
Average Receivable Outstanding(1).......... $28,403,076 $25,542,718 $22,031,829 $18,464,611
Gross Charge-Offs.......................... $ 1,891,601 $ 1,458,450 $ 923,836 $ 680,487
Gross Charge-Offs as a Percentage of
Average Receivables Outstanding(2)....... 7.27% 5.71% 4.19% 3.69%
</TABLE>
____________________________
(1) Average Receivables Outstanding is the average of the monthly average
amount of receivables outstanding during the periods indicated.
(2) Recoveries with respect to charged-off receivables in the Accounts (other
than the proceeds of sales of charged-off accounts that have been removed
from the Trust) are property of the Trust and are treated as finance
charge collections.
SUMMARY PAYMENT RATE INFORMATION (1). The monthly rate of payments in the
Discover Card Portfolio is summarized as follows:
<TABLE>
<CAPTION>
Year Ended December 31
Eleven Months Ended ----------------------------
November 30, 1997 1996 1995 1994
------------------- -------- -------- --------
<S> <C> <C> <C> <C>
Average Monthly Payment Rate(2)... 14.51% 15.24% 16.20% 16.65%
High Monthly Payment Rates........ 16.31% 18.08% 18.97% 17.89%
Low Monthly Payment Rates......... 12.41% 13.33% 13.67% 15.16%
</TABLE>
______________________________
(1) Monthly Payment Rate is calculated by dividing monthly cardmember
remittances by the cardmember receivables balance outstanding as of the
beginning of the month.
(2) Average Monthly Payment Rate for a period is equal to the sum of
individual monthly payment rates for the period divided by the number of
months in the period.
8
