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, 1997
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 Nos. 0-23942
HOUSEHOLD AFFINITY CREDIT CARD MASTER TRUST I
(Exact name of Registrant as specified in Department
of the Treasury, Internal Revenue Service Form SS-4)
HOUSEHOLD FINANCE CORPORATION
(Servicer of the Trust)
(Exact name as specified in Servicer's charter)
DELAWARE 36-3670374
(State or other jurisdiction of (I.R.S. Employer Identification
incorporation of Servicer) Number of Registrant
2700 SANDERS ROAD, PROSPECT HEIGHTS, ILLINOIS 60070
(Address of principal executive offices of (Zip Code)
Servicer)
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 Certificates held by non-
affiliates of the Servicer as of December 31, 1997 was
approximately $3,845.9 million.
<PAGE>
INTRODUCTORY NOTE
Household Affinity Funding Corporation (the "Seller") is the
seller under a Pooling and Servicing Agreement dated as of April
30, 1993, as amended by the Amended and Restated Pooling and
Servicing Agreement dated as of August 1, 1993 (collectively, the
"Agreement") by and among the Seller, Household Finance
Corporation, as Servicer (the "Servicer") and The Bank of New York,
as trustee (the "Trustee"), as supplemented thereby by various
series supplements, providing for the issuance of certificates in
varying series (the "Certificates"), and is the originator of the
trust called the Household Affinity Credit Card Master Trust I (the
"Registrant" or the "Trust").
Each Certificate represents an undivided interest in a pool of
receivables held by the Trust. The Certificates issued, or to be
issued, may be senior ("Class A Certificates"), subordinated
("Class B Certificates") and Seller Certificate(s). The Registrant
has prepared this Form 10-K 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 and as a result of the Commission's issuance of a
favorable response to the Trust's Application for Exemptive Order
pursuant to Section 12(h) of the Securities Exchange Act of 1934.
Items designated herein as "Not Applicable" have been omitted as a
result of this reliance and in anticipation of favorable action by
the Commission.
<PAGE>
PART I
Item 1. Business.
Not Applicable.
Item 2. Properties.
Not Applicable.
Item 3. Legal Proceedings.
The Servicer is not aware of any material pending legal
proceedings involving either the Registrant, the Trustee,
the Seller or the Servicer with respect to the
Certificates 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 Certificates
(the "Certificateholders") was solicited for any purpose
during the year ended December 31, 1997.
PART II
Item 5. Market for Registrant's Common Equity and Related
Stockholder Matters.
To the best knowledge of the Servicer, there is no
established public trading market for the Certificates.
As of February 10, 1998, there were 129 Class A
Certificateholders (no more than 51 for any one series)
and 26 Class B Certificateholders, some of whom may be
holding Certificates for the accounts of others.
Item 6. Selected Financial Data.
Not Applicable.
<PAGE>
Item 7. Management's Discussion and Analysis of Financial
Condition and Results of Operations.
Not Applicable.
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 Servicer is not aware of any Schedules 13D or 13G
filed with the Securities and Exchange Commission in
respect of the Certificates. All Certificates are held
in the name of The Depository Trust Company (DTC). The
Servicer will provide, without charge, a listing of the
beneficial owners as provided by DTC as of February 10,
1998.
<PAGE>
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 Servicer is obligated to prepare an Annual
Statement to Certificateholders for the year
1997, and Independent Public Accountants are
required to prepare an Annual Servicing Report
pertaining to the compliance of the 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 1997.
Date of Reports Items Covered
October 15, 1997 Item 7 -- Statement to
November 17, 1997 Certificateholders with respect
December 15, 1997 to distributions made on
October 15, 1997, November 17,
1997 and December 15, 1997.
(c) Exhibit 99. Copy of Annual Statement to
Certificateholders for the year 1997.
(d) Not Applicable.
<PAGE>
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the
Securities Exchange Act of 1934, the Servicer has duly caused this
report to be signed on behalf of the Household Affinity Credit Card
Master Trust I by the undersigned, thereunto duly authorized.
HOUSEHOLD FINANCE CORPORATION,
as Servicer of and on behalf of the
HOUSEHOLD AFFINITY CREDIT CARD MASTER TRUST I
(Registrant)
Date: March 2, 1998 By:/s/John W. Blenke
John W. Blenke
Assistant Secretary
U:\WP\HFS088\95-10K\AFFINITY
<PAGE>
Exhibit Index
Exhibit No. Exhibit Page
No.
99 Copy of Annual Statement to 8
Certificateholders for the year
ended December 31, 1997.
Household Finance Corporation
Household Affinity Funding Corporation
Household Affinity Credit Card Master Trust, Series 1993-1
Original Class A Principal 900,000,000
Number of Class A Bonds (000's) 900,000
Original Class B Principal 52,945,000
Number of Class B Bonds (000's) 52,945
Sum 1/15/97
- -
12/15/97
Distribution Date 12/15/97 Total
1997
CLASS A
Beginning Class A Principal Outstanding
900,000,000
Beginning Class A Pool Factor 1.00000000
Class A Principal Distributions 0
0
Class A Principal Payment Factor (per 1,000 Bond)0.00000000
Ending Class A Principal Outstanding
900,000,000
Ending Class A Pool Factor 1.00000000
Class A Interest 4,121,250
52,875,863
Class A Interest Payment Factor (per 1,000 Bond)
4.57916667
CLASS B
Beginning Class B Principal Outstanding
52,945,000
Beginning Class B Pool Factor 1.00000000
Class B Principal Distributions 0
0
Class B Principal Pymt Factor (per 1,000 per
Bond)0.00000000
Ending Class B Principal Outstanding
52,945,000
Ending Class B Pool Factor 1.00000000
Class B Interest 233,840
2,806,083
Class A Interest PymtFactor (per 1,000 per Bond)
4.416658797
<PAGE>
Household Finance Corporation
Household Affinity Funding Corporation
Household Affinity Credit Card Master Trust, Series 1993-2
Original Class A Principal 500,000,000
Number of Class A Bonds (000's) 500,000
Original Class B Principal 29,412,000
Number of Class B Bonds (000's) 29,412
Sum 1/15/97
- -
12/15/97
Distribution Date 12/15/97 Total
1997
CLASS A
Beginning Class A Principal Outstanding
500,000,000
Beginning Class A Pool Factor 1.00000000
Class A Principal Distributions 0
0
Class A Principal Payment Factor (per 1,000 Bond)0.00000000
Ending Class A Principal Outstanding
500,000,000
Ending Class A Pool Factor 1.00000000
Class A Interest 2,333,333
28,000,000
Class A Interest Payment Factor (per 1,000 Bond)
4.66666666
CLASS B
Beginning Class B Principal Outstanding
29,412,000
Beginning Class B Pool Factor 1.00000000
Class B Principal Distributions 0
0
Class B Principal Payment Factor (per 1,000 Bond)
0.00000000
Ending Class B Principal Outstanding
29,412,000
Ending Class B Pool Factor 1.00000000
Class B Interest 144,609
1,735,308
Class A Interest Payment Factor (per 1,000 Bond)
4.916666667
<PAGE>
Household Finance Corporation
Household Affinity Funding Corporation
Household Affinity Credit Card Master Trust, Series 1994-1
Original Class A Principal 850,000,000
Number of Class A Bonds (000's) 850,000
Original Class B Principal 50,000,000
Number of Class B Bonds (000's) 50,000
Sum 1/15/97
- -
12/15/97
Distribution Date 12/15/97 Total
1997
CLASS A
Beginning Class A Principal Outstanding
850,000,000
Beginning Class A Pool Factor 1.00000000
Class A Principal Distributions 0
0
Class A Principal Payment Factor (per 1,000 Bond)0.00000000
Ending Class A Principal Outstanding
850,000,000
Ending Class A Pool Factor 1.00000000
Class A Interest 3,859,236
49,508,593
Class A Interest Payment Factor (per 1,000 Bond)
4.54027765
CLASS B
Beginning Class B Principal Outstanding
50,000,000
Beginning Class B Pool Factor 1.00000000
Class B Principal Distributions 0
0
Class B Principal Payment Factor (per 1,000 Bond)
0.00000000
Ending Class B Principal Outstanding
50,000,000
Ending Class B Pool Factor 1.00000000
Class B Interest 252,083
3,024,996
Class A Interest Payment Factor (per 1,000 Bond)
5.04166
<PAGE>
Household Finance Corporation
Household Affinity Funding Corporation
Household Affinity Credit Card Master Trust, Series 1994-2
Original Class A Principal 870,000,000
Number of Class A Bonds (000's) 870,000
Original Class B Principal 40,000,000
Number of Class B Bonds (000's) 40,000
Sum 1/15/97
- -
12/15/97
Distribution Date 12/15/97 Total
1997
CLASS A
Beginning Class A Principal Outstanding
145,000,000
Beginning Class A Pool Factor 0.16666667
Class A Principal Distribution
145,000,000
870,000,000
Class A Principal Payment Factor (per 1,000
Bond)166.66666667
Ending Class A Principal Outstanding 0
Ending Class A Pool Factor 0.00000000
Class A Interest 845,833
48,212,500
Class A Interest Payment Factor (per 1,000 Bond)
0.97222184
CLASS B
Beginning Class B Principal Outstanding
40,000,000
Beginning Class B Pool Factor 1.00000000
Class B Principal Distribution
40,000,000
40,000,000
Class B Principal Payment Factor (per 1,000 Bond)
1000.00000000
Ending Class B Principal Outstanding 0
Ending Class B Pool Factor 0.00000000
Class B Interest 240,000
2,880,000
Class A Interest Payment Factor (per 1,000 Bond)
6.00000000
<PAGE>
Household Finance Corporation
Household Affinity Funding Corporation
Household Affinity Credit Card Master Trust, Series 1995-1
Original Class A Principal 522,000,000
Number of Class A Bonds (000's) 522,000
Original Class B Principal 24,000,000
Number of Class B Bonds (000's) 24,000
Sum 1/15/97
- -
12/15/97
Distribution Date 12/15/97 Total
1997
CLASS A
Beginning Class A Principal Outstanding
145,000,000
Beginning Class A Pool Factor 0.27777778
Class A Principal Distribution 0
0
Class A Principal Payment Factor (per 1,000 Bond)0.00000000
Ending Class A Principal Outstanding
145,000,000
Ending Class A Pool Factor 0.27777778
Class A Interest 2,370,025
30,404,102
Class A Interest Payment Factor (per 1,000 Bond)
4.54027778
CLASS B
Beginning Class B Prinicpal Outstanding
40,000,000
Beginning Class B Principal Factor 1.66666667
Class B Principal Distribution 0
0
Class B Principal Payment Factor (per 1,000 Bond)
0.00000000
Ending Class B Principal Outstanding
40,000,000
Ending Class B Pool Factor 1.66666667
Class B Interest 154,000
1,848,000
Class A Interest Payment Factor (per 1,000 Bond)
6.41666667
<PAGE>
Household Finance Corporation
Household Affinity Funding Corporation
Household Affinity Credit Card Master Trust, Series 1997-1
Original Class A Principal 870,000,000
Number of Class A Bonds (000's) 870,000
Original Class B Principal 47,500,000
Number of Class B Bonds (000's) 47,500
Sum 1/15/97
- -
12/15/97
Distribution Date 12/15/97 Total
1997
CLASS A
Beginning Class A Principal Outstanding
870,000,000
Beginning Class A Pool Factor 1.00000000
Class A Principal Distribution 0
0
Class A Principal Payment Factor (per 1,000 Bond)0.00000000
Ending Class A Principal Outstanding
870,000,000
Ending Class A Pool Factor 1.00000000
Class A Interest 3,916,208
36,670,726
Class A Interest Payment Factor (per 1,000 Bond)
4.50138851
CLASS B
Beginning Class B Prinicpal Outstanding
47,500,000
Beginning Class B Pool Factor 1.00000000
Class B Principal Distribution 0
0
Class B Principal Payment Factor (per 1,000 Bond)
0.00000000
Ending Class B Principal Outstanding
47,500,000
Ending Class B Pool Factor 1.00000000
Class B Interest 220,466
2,064,601
Class A Interest Payment Factor (per 1,000 Bond)
4.64138947
