<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): NOVEMBER 4, 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 1998-7. ON NOVEMBER 4, 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 $750,000,000
AGGREGATE PRINCIPAL AMOUNT OF SERIES 1998-7 ___% CLASS A CREDIT CARD
PASS-THROUGH CERTIFICATES AND $39,474,000 AGGREGATE PRINCIPAL AMOUNT OF SERIES
1998-7 ___% 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
--------
EXHIBIT NO. DESCRIPTION
- ----------- -----------
EXHIBIT 99 SERIES TERM SHEET DATED NOVEMBER 4, 1998, WITH RESPECT TO
THE PROPOSED ISSUANCE OF THE ___% CLASS A CREDIT CARD
PASS-THROUGH CERTIFICATES AND THE ___% CLASS B CREDIT CARD
PASS-THROUGH CERTIFICATES OF DISCOVER CARD MASTER TRUST I,
SERIES 1998-7.
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: NOVEMBER 4, 1998 BY: /S/ JOHN J. COANE
-----------------------------------
JOHN J. COANE
VICE PRESIDENT, CHIEF ACCOUNTING OFFICER
AND TREASURER
<PAGE> 4
INDEX TO EXHIBITS
-----------------
<TABLE>
<CAPTION>
EXHIBIT DESCRIPTION PAGE
- ------- ----------- ----
<S> <C> <C>
EXHIBIT 99 SERIES TERM SHEET DATED NOVEMBER 4, 1998, WITH RESPECT 5
TO THE PROPOSED ISSUANCE OF THE ___% CLASS A CREDIT CARD
PASS-THROUGH CERTIFICATES AND THE ___% CLASS B CREDIT
CARD PASS-THROUGH CERTIFICATES OF DISCOVER CARD MASTER
TRUST I, SERIES 1998-7.
</TABLE>
PAGE 4
<PAGE> 1
EXHIBIT 99
SUBJECT TO REVISION
SERIES TERM SHEET DATED NOVEMBER 4, 1998
DISCOVER(R) CARD MASTER TRUST I, SERIES 1998-7
$750,000,000 __% CLASS A CERTIFICATES
$39,474,000 __% CLASS B CERTIFICATES
GREENWOOD TRUST COMPANY
MASTER SERVICER, SERVICER AND SELLER
THE CERTIFICATES REPRESENT INTERESTS IN THE DISCOVER CARD MASTER TRUST
I. THE CERTIFICATES ARE NOT OBLIGATIONS OF GREENWOOD TRUST COMPANY OR ANY OF ITS
AFFILIATES, AND NEITHER THE CERTIFICATES NOR THE UNDERLYING CREDIT CARD
RECEIVABLES ARE INSURED OR GUARANTEED BY ANY 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 IN THIS SERIES TERM SHEET IS
PRELIMINARY AND WILL BE SUPERSEDED BY THE INFORMATION CONTAINED IN THE
PROSPECTUS SUPPLEMENT AND THE PROSPECTUS. YOU SHOULD READ BOTH THE PROSPECTUS
SUPPLEMENT AND THE PROSPECTUS. THE TRUST AND THE DISCOVER CARD PORTFOLIO MAY NOT
PERFORM IN THE FUTURE AS THEY HAVE PERFORMED IN THE PAST. PRICE AND AVAILABILITY
OF THE CERTIFICATES MAY CHANGE WITHOUT NOTICE.
WE HAVE PREPARED THIS SERIES TERM SHEET SOLELY FOR INFORMATIONAL
PURPOSES. THIS SERIES TERM SHEET IS NOT AN OFFER TO BUY OR SELL ANY SECURITY,
NOR IS IT A REQUEST TO PARTICIPATE IN ANY PARTICULAR TRADING STRATEGY. GREENWOOD
MAY NOT OFFER OR SELL THE CERTIFICATES IN ANY STATE WHERE THE OFFER OR SALE IS
PROHIBITED. GREENWOOD WILL NOT SELL YOU ANY OF THE CERTIFICATES UNLESS YOU HAVE
RECEIVED BOTH THE PROSPECTUS SUPPLEMENT AND THE PROSPECTUS. THE UNDERWRITERS MAY
HOLD OR TRADE SECURITIES OF THE TRUST OR GREENWOOD AND MAY ALSO PERFORM
INVESTMENT BANKING SERVICES FOR THE TRUST AND GREENWOOD.
MORGAN STANLEY DEAN WITTER
ABN AMRO INCORPORATED
FIRST CHICAGO CAPITAL MARKETS, INC.
NATIONSBANC MONTGOMERY SECURITIES LLC
SG COWEN
THIS SERIES TERM SHEET MAY NOT BE DISTRIBUTED 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 1998-7
Supplement to the Pooling and Servicing Agreement.
TITLE OF SECURITIES......................... Discover Card Master Trust I,
Series 1998-7 __% Class A Credit
Card Pass-Through Certificates and
Discover Card Master Trust I,
Series 1998-7 __% Class B Credit
Card Pass-Through Certificates.
INTEREST RATE............................... Class A Certificates: _____% per
year.
Class B Certificates: _____% per
year.
The Trustee will calculate
interest on the Certificates on
the basis of the actual number of
days elapsed and a 360-day year of
twelve 30-day months.
INTEREST PAYMENT DATES...................... The 15th day of each May and
November (or the next business
day), beginning in May 1999, and
at maturity for the Class B
Certificates.
EXPECTED MATURITY DATES..................... Class A Certificates: November
15, 2003 (or the next business
day). If an Amortization Event
occurs, the Trust will pay
principal monthly and the final
principal payment may be made
before or after November 15, 2003.
Class B Certificates: December 15,
2003 (or the next business day).
If an Amortization Event occurs,
the Trust will pay principal
monthly and the final payment of
principal may be made either
before or after December 15, 2003.
The Trust must generally pay all
Class A principal before it pays
any Class B principal.
An "Amortization Event" is an
event that will cause the Trust to
begin repaying principal on a
monthly basis.
SERIES TERMINATION DATE..................... The first business day following
May 15, 2006 (or, if May 15, 2006
is not a business day, the second
business day following May 15,
2006). The Series Termination
Date is the last day on which the
Trust will pay principal on the
Certificates.
SUBORDINATION OF CLASS B CERTIFICATES
(CLASS A CREDIT ENHANCEMENT)................ The Class B Certificates are
subordinated to the Class A
Certificates, up to a specified
dollar amount, known as the
"Available Subordinated Amount."
AVAILABLE SUBORDINATED AMOUNT............... Initially $67,105,290, which may
be reduced, reinstated or
increased from time to time. The
Available Subordinated Amount will
increase by $39,473,700 after an
Effective Alternative Credit
Support Election.
"Effective Alternative Credit
Support Election" will mean an
effective election made by
Greenwood to change the way in
which the Trust allocates finance
charge collections to this Series.
To make this election,
2
<PAGE> 3
Greenwood must deposit additional
funds into the cash collateral
account discussed below.
CASH COLLATERAL ACCOUNT
(CLASS B CREDIT ENHANCEMENT)................ Greenwood will arrange to have a
cash collateral account
established and funded for the
direct benefit of the Class B
investors (the "Credit Enhancement
Account").The Trustee may withdraw
funds from this account to
reimburse the Class B investors
for amounts that would otherwise
reduce their interest in the Trust
or affect their interest payments.
Greenwood will deposit $31,578,960
in the Credit Enhancement Account
on the date the Certificates are
issued. This amount may decrease
or increase on future Distribution
Dates. A "Distribution Date" is
the 15th calendar day of each
month (or the next business day),
beginning in December 1998.
The maximum amount of Credit
Enhancement as of any Distribution
Date will be:
Before either an Effective
Alternative Credit Support
Election or a Supplemental Credit
Enhancement Event:
- 4.0% of the Series Investor
Interest as of the end of the
preceding month (but not less
than $7,894,740); or
Before an Effective Alternative
Credit Support Election but after
a Supplemental Credit Enhancement
Event:
- 5.0% of the Series Investor
Interest as of the end of the
preceding month (but not less
than $7,894,740); or
After an Effective Alternative
Credit Support Election
- 8.5% of the Series Investor
Interest as of the end of the
preceding month (but not less
than $7,894,740).
However, if an Amortization Event
has occurred, the maximum amount
of Credit Enhancement will be the
amount on deposit in the Credit
Enhancement Account on the
Distribution Date immediately
before the Amortization Event
occurred.
A "Supplemental Credit Enhancement
Event" will occur the first time
Standard & Poor's Ratings Services
withdraws the long-term debt or
deposit rating of Greenwood (or an
additional seller, if any) or
reduces this rating below BBB -.
"Series Investor Interest" will
mean $789,474,000 minus
- the amount of principal
collections on deposit
for the benefit of investors
in this Series (after giving
effect to losses of principal
on investments of these
funds),
3
<PAGE> 4
- the aggregate amount of
principal previously paid to
investors in this Series, and
- the aggregate amount of
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 these
charged-off amounts).
THE RECEIVABLES........................ The receivables in the Accounts
included in the Trust as of
October 1, 1998 totaled
$24,021,453,838.82. Greenwood has
no reason to believe that the
amount of receivables in the
Accounts on November 1, 1998,
which may be different because of
Account activity after October 1,
1998, will be materially different
from this amount.
GROUP EXCESS SPREAD.................... The Certificates initially will be
included in the "Group One" group
of series. The three-month
rolling average Group Excess
Spread Percentage (as defined
below) was 4.49% for the
Distribution Date in October 1998.
"Group Excess Spread Percentage"
for any Distribution Date is a
percentage calculated by
multiplying:
- twelve, by
- an amount for all series in
Group One equal to
- the total amount of
finance charge
collections, investment
income and other
collections allocable to
each series for the prior
calendar month, minus
- the total amount of
interest and certain fees
payable for each series
and the amount of
receivables allocable to
each series that have been
charged off as
uncollectible for the
prior calendar month;
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.... The Trust will only issue the
Certificates if Standard & Poor's
has rated the Class A Certificates
"AAA" and the Class B Certificates
at least "A" and Moody's Investors
Service, Inc. has rated the Class
A Certificates "Aaa" and has rated
the Class B Certificates at least
"A2."
ERISA CONSIDERATIONS.................. Greenwood believes that employee
benefit plans subject to ERISA may
acquire Class A Certificates;
however, advisers to these plans
should consult their own counsel.
Employee benefit plans subject to
ERISA may not acquire the Class B
Certificates.
LISTING.............................. Greenwood expects to list the
Certificates on the Luxembourg
Stock Exchange to facilitate
trading in non-U.S. markets.
4
<PAGE> 5
COMPOSITION OF THE ACCOUNTS
We have set forth information below about the Accounts that are part of the
Trust. We provide additional information about all accounts in the Discover Card
Portfolio under "Composition and Historical Performance of the Discover Card
Portfolio."
GEOGRAPHIC DISTRIBUTION. As of October 1, 1998, the following five states
had the largest receivables balances:
<TABLE>
<CAPTION>
STATE PERCENTAGE OF TOTAL RECEIVABLES
----- BALANCE IN THE ACCOUNTS
-----------------------
<S> <C>
California....................... 11.4%
Texas............................ 9.3%
New York......................... 6.8%
Florida.......................... 5.9%
Illinois......................... 5.0%
</TABLE>
CREDIT LIMIT INFORMATION. As of October 1, 1998, the Accounts had the
following credit limits:
<TABLE>
<CAPTION>
PERCENTAGE
RECEIVABLES OF TOTAL
OUTSTANDING RECEIVABLES
CREDIT LIMIT (000'S) OUTSTANDING
- ------------ ------- -----------
<S> <C> <C>
Less than or equal to $1,000.00............. $ 545,437 2.3%
$1,000.01 to $2,000.00...................... $ 2,713,446 11.3%
$2,000.01 to $3,000.00...................... $ 3,133,255 13.0%
Over $3,000.00.............................. $17,629,316 73.4%
----------- -----
Total..................................... $24,021,454 100.0%
=========== =====
</TABLE>
SEASONING. As of October 1, 1998, 87.4% of the Accounts were at least 24
months old. The ages of Accounts as of October 1, 1998 were distributed as
follows:
<TABLE>
<CAPTION>
PERCENTAGE PERCENTAGE
AGE OF ACCOUNTS OF ACCOUNTS OF BALANCES
--------------- ----------- -----------
<S> <C> <C>
Less than 12 Months.............. 4.3% 2.3%
12 to 23 Months.................. 8.3% 8.0%
24 to 35 Months.................. 12.5% 12.9%
36 Months and Greater............ 74.9% 76.8%
------ ------
100.0% 100.0%
===== =====
</TABLE>
SUMMARY CURRENT DELINQUENCY INFORMATION. As of October 1, 1998, the
Accounts had the following delinquency statuses:
<TABLE>
<CAPTION>
AGGREGATE
BALANCES PERCENTAGE
PAYMENT STATUS (000'S) OF BALANCES
-------------- ------- -----------
<S> <C> <C>
Current......................... $20,544,760 85.6%
1 to 29 Days.................... $ 1,690,523 7.0%
30 to 59 Days................... $ 651,395 2.7%
60 to 89 Days................... $ 403,810 1.7%
90 to 119 Days.................. $ 298,236 1.2%
120 to 149 Days................. $ 238,359 1.0%
150 to 179 Days................. $ 194,371 0.8%
----------- -----
$24,021,454 100.0%
=========== =====
</TABLE>
5
<PAGE> 6
COMPOSITION AND HISTORICAL PERFORMANCE
OF THE DISCOVER CARD PORTFOLIO
GEOGRAPHIC DISTRIBUTION. The Discover Card portfolio is not highly
concentrated geographically. As of August 31, 1998, the following five states
had the largest receivables balances:
<TABLE>
<CAPTION>
PERCENTAGE OF TOTAL RECEIVABLES BALANCE
OF DISCOVER CARD PORTFOLIO
STATE AS OF AUGUST 31, 1998
----- ---------------------------------------
<S> <C>
California............... 11.2%
Texas.................... 9.3%
New York................. 6.8%
Florida.................. 5.8%
Illinois................. 5.1%
</TABLE>
No other state accounted for more than 5% of the total receivables balance
of the Discover Card portfolio as of August 31, 1998.
CREDIT LIMIT INFORMATION. As of August 31, 1998, the accounts in the
Discover Card portfolio had the following credit limits:
<TABLE>
<CAPTION>
PERCENTAGE
RECEIVABLES OF TOTAL
OUTSTANDING RECEIVABLES
CREDIT LIMIT (000'S) OUTSTANDING
------------ -------- -----------
<S> <C> <C>
Less than or equal to $1,000.00........ $ 626,479 2.1%
$1,000.01 to $2,000.00................. 3,114,058 10.5%
$2,000.01 to $3,000.00................. 3,532,451 11.9%
Over $3,000.00......................... $22,347,750 75.5%
----------- -----
Total................................ $29,620,738 100.0%
=========== =====
</TABLE>
SEASONING. As of August 31, 1998, 87.7% of the accounts in the Discover
Card portfolio were at least 24 months old. The ages of the accounts in the
Discover Card portfolio as of August 31, 1998 were distributed as follows:
<TABLE>
<CAPTION>
PERCENTAGE PERCENTAGE
AGE OF ACCOUNTS OF ACCOUNTS OF BALANCES
--------------- ----------- -----------
<S> <C> <C>
Less than 12 Months..... 5.2% 2.5%
12 to 23 Months......... 7.1% 7.1%
24 to 35 Months......... 10.7% 10.9%
36 Months and Greater... 77.0% 79.5%
----- -----
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>
NINE MONTHS ENDED ELEVEN MONTHS ENDED TWELVE MONTHS ENDED TWELVE MONTHS ENDED
AUGUST 31, 1998 NOVEMBER 30, 1997 DECEMBER 31, 1996 DECEMBER 31, 1995
--------------- ----------------- ----------------- -----------------
<S> <C> <C> <C> <C>
Aggregate Monthly Yields (1)
Excluding Recoveries (2) 17.96% 18.19% 17.72% 16.95%
Including Recoveries (3) 18.69% 18.90% 18.20% 17.39%
</TABLE>
------------------------------
(1) Greenwood calculates the "Monthly Yield" by dividing the
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. "Aggregate Monthly Yield" is the average of
Monthly Yields annualized for each period shown.
(2) Aggregate Monthly Yield excluding any recoveries received with
respect to charged-off accounts.
(3) Aggregate Monthly Yield including recoveries received with
respect to charged-off accounts. Recoveries received with
respect to receivables in the Trust that have been charged off
as uncollectible (including the proceeds of sales of these
receivables by the Trust, but excluding proceeds of sales of
charged-off receivables that Greenwood has removed from the
Trust) are included in the Trust and are treated as finance
charge collections.
SUMMARY CURRENT DELINQUENCY INFORMATION. As of August 31, 1998, the
accounts in the Discover Card portfolio had the following delinquency statuses:
<TABLE>
<CAPTION>
AGGREGATE
BALANCES PERCENTAGE
PAYMENT STATUS (000'S) OF BALANCES
-------------- ------ -----------
<S> <C> <C>
Current.............................. $ 25,541,828 86.1%
1 to 29 Days......................... $ 1,972,636 6.7%
30 to 59 Days........................ $ 759,874 2.6%
60 to 89 Days........................ $ 468,271 1.6%
90 to 119 Days....................... $ 349,245 1.2%
120 to 149 Days...................... $ 271,577 0.9%
150 to 179 Days...................... $ 257,307 0.9%
------------ -----
$ 29,620,738 100.0%
============ =====
</TABLE>
SUMMARY HISTORICAL DELINQUENCY INFORMATION. The accounts in the Discover
Card portfolio had the following historical delinquency rates:
<TABLE>
<CAPTION>
AVERAGE OF NINE MONTHS AVERAGE OF ELEVEN MONTHS AVERAGE OF TWELVE MONTHS AVERAGE OF TWELVE MONTHS
ENDED AUGUST 31, 1998 ENDED NOVEMBER 30, 1997 ENDED DECEMBER 31, 1996 ENDED DECEMBER 31, 1995
--------------------- ----------------------- ----------------------- -----------------------
DELINQUENT DELINQUENT DELINQUENT DELINQUENT
AMOUNT AMOUNT AMOUNT AMOUNT
(000'S) PERCENTAGE(1) (000'S) PERCENTAGE (1) (000'S) PERCENTAGE (1) (000'S) PERCENTAGE(1)
------- ------------- ------- -------------- ------- -------------- ------- -------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
30-59 Days.... $ 769,608 2.6% $ 743,464 2.6% $ 680,645 2.7% $ 568,382 2.6%
60-89 Days.... $ 449,045 1.5% $ 432,410 1.5% $ 361,992 1.4% $ 276,821 1.3%
90-179 Days... $ 848,369 2.8% $ 803,204 2.8% $ 593,661 2.3% $ 403,134 1.8%
---------- --- ---------- ---- ---------- --- ----------- ---
Total....... $2,067,022 6.9% $1,979,078 6.9% $1,636,298 6.4% $1,248,337 5.7%
========== --- ========== ==== ========== --- ---------- ---
</TABLE>
---------------------------------
(1) Greenwood calculates the percentages by dividing the Delinquent
Amount by the Average Receivables Outstanding for each period.
The "Delinquent Amount" is the average of the monthly ending
balances of delinquent accounts during the periods indicated.
The "Average Receivables Outstanding" is the average of the
monthly average amount of receivables outstanding during the
periods indicated.
7
<PAGE> 8
SUMMARY CHARGE-OFF INFORMATION. The accounts in the Discover Card
portfolio have had the following historical charge-offs:
<TABLE>
<CAPTION>
NINE MONTHS ENDED ELEVEN MONTHS ENDED TWELVE MONTHS ENDED TWELVE MONTHS ENDED
AUGUST 31, 1998 NOVEMBER 30, 1997 DECEMBER 31, 1996 DECEMBER 31, 1995
--------------- ----------------- ----------------- -----------------
(dollars in thousands)
<S> <C> <C> <C> <C>
Average Receivables $29,790,646 $28,403,076 $25,542,718 $22,031,829
Outstanding(1)...........
Gross Charge-Offs........ $ 1,651,919 $ 1,891,601 $ 1,458,450 $ 923,836
Gross Charge-Offs as a
Percentage of Average
Receivables ............ 7.39% 7.27% 5.71% 4.19%
Outstanding(2)...........
</TABLE>
------------------------------
(1) "Average Receivables Outstanding" is the average of the monthly average
amount of receivables outstanding during the periods indicated.
(2) Recoveries received with respect to receivables in the Trust that have
been charged off as uncollectible (including the proceeds of sales of
these receivables by the Trust, but excluding proceeds of sales of
charged-off receivables that Greenwood has removed from the Trust) are
included in the Trust and are treated as finance charge collections.
SUMMARY PAYMENT RATE INFORMATION (1). The accounts in the Discover Card
portfolio have had the following historical monthly payment rates:
<TABLE>
<CAPTION>
NINE MONTHS ENDED ELEVEN MONTHS ENDED TWELVE MONTHS ENDED TWELVE MONTHS ENDED
AUGUST 31, 1998 NOVEMBER 30, 1997 DECEMBER 31, 1996 DECEMBER 31, 1995
--------------- ----------------- ----------------- -----------------
<S> <C> <C> <C> <C>
Average Monthly Payment Rate(2).... 15.34% 14.51% 15.24% 16.20%
Highest Monthly Payment Rate....... 17.01% 16.31% 18.08% 18.97%
Lowest Monthly Payment Rate........ 13.90% 12.41% 13.33% 13.67%
</TABLE>
- -----------------------
(1) Greenwood calculates the "Monthly Payment Rate" by dividing monthly
cardmember remittances by the cardmember receivable balance outstanding
as of the beginning of the month.
(2) Greenwood calculates the "Average Monthly Payment Rate" for a period
by dividing the sum of individual monthly payment rates for the period
by the number of months in the period.
8
