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, 1996
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. 0-36050
HOUSEHOLD PRIVATE LABEL CREDIT CARD MASTER TRUST II
(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, 1996 was
approximately $660 million.
<PAGE>
INTRODUCTORY NOTE
HRSI Funding, Inc. (the "Seller") is the seller under a
Pooling and Servicing Agreement (the "Agreement") dated as of
October 1, 1994, by and among the Seller, Household Finance
Corporation, as Servicer (the "Servicer") and Bank America National
Trust Company, as trustee (the "Trustee"), as amended by the Series
1994-2 Supplement to the Agreement dated as of October 1, 1994 (the
"Supplement"), providing for the issuance of certificates in
varying series (the "Certificates"), and is the originator of the
trust called the Household Private Label Credit Card Master Trust
II (the "Registrant" or the "Trust").
Each Certificate represents an undivided interest in a
specific 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 a Seller Certificate.
The Seller, Servicer and Trustee have established a Cash Collateral
Account and a Collateral Invested Amount for the benefit of the
holders of the Class A and Class B Certificates. 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 favorable response to
the Loan Application for Exemptive Order pursuant to Section 12(h)
of the Securities Exchange Act of 1934 on May 20, 1992 which the
Commission issued to the Private Label Credit Card Master Trust,
the predecessor to the Trust. 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, 1996.
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 January 31, 1997, there were 64 Class A
Certificateholders (41 holders of Class A Certificates,
Series 1994-1 and 23 holders of Class A Certificates,
Series 1994-2) and 9 Class B Certificateholders (5
holders of Class B Certificates, Series 1994-1 and 4
holders of Class B Certificates, Series 1994-2), 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 following table sets forth (i) the name and address
of each entity owning more than 5% of the outstanding
principal amount of the Class A or the Class B
Certificates; (ii) the principal amount of Certificates
owned by each and (iii) the percent that the principal
amount of Certificates owned represents of the
outstanding principal amount of the Class A or the Class
B Certificates. The information set forth in the table
is based upon information obtained by the Servicer from
the Trustee and from The Depository Trust Company as of
January 31, 1997. The Servicer is not aware of any
Schedules 13D or 13G filed with the Securities and
Exchange Commission in respect of the Certificates.
<PAGE>
Amount Owned
All dollar amounts are
in thousands
Name and Address Principal Percent
Class A Certificateholders (Series 1994-1)
Bank of New York $ 53,560 17.42
925 Patterson Plank Road
Secaucus, NJ 07094
Bankers Trust Company $ 24,695 8.03
c/o BT Services Tennessee Inc.
Pension Trust Services
648 Grassmere Park Drive
Nashville, TN 37211
Bankers Trust Co./Investment A/C $ 21,795 7.09
16 Wall Street, 5th Floor
New York, Ny 10005
SSB - Custodian $ 77,500 25.20
c/o ADP Proxy Services
51 Mercedes Way
Edgewood, NY 11717
UBS Securities Inc./Union Bank of $ 20,105 6.54
Switzerland, New York Branch
299 Park Avenue
New York, NY 10171-0026
<PAGE>
Amount Owned
All dollar amounts are
in thousands
Name and Address Principal Percent
Class A Certificateholders (Series 1994-2)
Bank of New York $ 50,000 16.26
925 Patterson Plank Road
Secaucus, NJ 07094
Bankers Trust Company $ 46,773 15.21
c/o BT Services Tennessee Inc.
Pension Trust Services
648 Grassmere Park Drive
Nashville, TN 37211
Chase Manhattan Bank $113,387 36.87
One Chase Manhattan Plaza
3B - Proxy Dept.
New York, NY 10081
Firstar Trust Company $ 23,750 7.72
777 East Wisconsin Avenue
Milwaukee, WI 53202
NBD Bank $ 16,600 5.40
611 Woodward Avenue
Detroit, MI 48226
<PAGE>
Amount Owned
All dollar amounts are
in thousands
Name and Address Principal Percent
Class B Certificateholders (Series 1994-1)
Chase Manhattan Bank $ 13,250 58.89
One Chase Manhattan Plaza
3B - Proxy Department
New York, NY 10081
SSB-Custodian $ 7,000 31.11
c/o ADP Proxy Services
51 Mercedes Way
Edgewood, NY 11717
Class B Certificateholders (Series 1994-2)
Bankers Trust Company $ 6,500 28.89
c/o BT Services Tennessee Inc.
Pension Trust Services
648 Grassmere Park Drive
Nashville, TN 37211
Chase Manhattan Bank $ 3,500 15.56
One Chase Manhattan Plaza
3B - Proxy Department
New York, NY 10081
Citicorp Services, Inc. $ 11,000 48.89
P. O. Box 30576
Tampa, KL 33630-3576
Investors Bank & Trust/ $ 1,500 6.67
M.F. Custody
89 South Street, 6th Floor
Corp. Action Dept.
Boston, MA 02111
<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
1996, 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 1996.
Date of Reports Items Covered
October 21, 1996 Item 7 -- Statement to
November 20, 1996 Certificateholders with respect
December 20, 1996 to distributions made on
October 21, 1996, November 20,
1996 and December 20, 1996.
(c) Exhibit 99. Copy of Annual Statement to
Certificateholders for the year 1996.
(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 Private Label Credit
Card Master Trust II by the undersigned, thereunto duly authorized.
HOUSEHOLD FINANCE CORPORATION,
as Servicer of and on behalf of the
HOUSEHOLD PRIVATE LABEL CREDIT CARD MASTER TRUST II
(Registrant)
Date: February 14, 1997 By:/s/ John W. Blenke
John W. Blenke
Assistant Secretary
<PAGE>
Exhibit Index
Exhibit Page
No. Exhibit No.
99 Copy of Annual Statement to
Certificateholders for the year
ended December 31, 1996 11
U:\WP\HFS088\95-10K-PLCC
*******************************************************************
Household Finance Corporation
HRSI Funding, Inc.
Household Private Label Credit Card Master Trust II, Series 1994-1
*******************************************************************
Sum of 1/22/96-12/20/96
Distribution Dates
CLASS A CERTIFICATEHOLDER'S STATEMENT
A. Information Regarding Distributions
1. Total distribution per $1,000 interest 727.25
2. Principal distribution per $1,000 interest 666.67
3. Interest distribution per $1,000 interest 60.59
B. Performance of Trust
1. Collections of Receivables
(a) Total Collections 1,300,113,507.67
(b) Collections of Finance Charge & Administrative Receivable
294,624,967.09
(c) Collections of Principal 1,005,488,540.58
2. Allocation of Receivables
(a) First Due Period 82.00%
(b) Second Due Period 82.00%
(c) Third Due Period 82.00%
(d) Fourth Due Period 82.00%
(e) Fifth Due Period 82.00%
(f) Sixth Due Period 81.49%
(g) Seventh Due Period 80.90%
(h) Eighth Due Period 80.18%
(i) Ninth Due Period 79.30%
(j) Tenth Due Period 78.19%
(k) Eleventh Due Period 76.77%
(l) Twelvth Due Period 74.85%
3. Class A Principal
(a) Total Amount Paid / Deposited to
Principal Funding Account 0.00
(b) Total amount on deposit in Principal
Funding Account 0.00
4. Delinquent Balances (gross/gross) - Reported on 12/20/96 distribution
date as of 11/
(a) 30 - 59 days (Del Stat 1) -- ($) 53,365,145.10
(%) 4.39%
(b) 60 - 89 days (Del Stat 2) -- ($) 26,348,296.69
(%) 2.17%
(c) 90+ days (Del Stat 3+) -- ($) 88,729,073.50
(%) 7.29%
5. Class A Investor Default Amount 12,317,620.60
<PAGE>
CLASS A CERTIFICATEHOLDER'S STATEMENT
6. Class A Investor Charge-Offs;
Reimbursement of Charge-Offs.
(a) Class A Investor Charge-Offs, if any, for the Distribution
Date(s) with respect to the Payment Date 0.00
(b) The amount of Item 6(a) per $1,000 interest
0.00
(c) Total reimbursed to Trust in respect of Class A
Investor Charge-Offs
0.00
(d) The amount of Item 6(c) per $1,000 interest
0.00
(e) The amount, if any, by which the outstanding principal
balance of the Class A Certificates exceeds the Class A
Invested Amount as of the end of such Payment Date
0.00
7. Allocable Servicing Fee paid for the Distribution
Date(s) with respect to the Payment Date 6,480,823.85
8. Deficit Controlled Amortization Amount for such Payment Date
0.00
C. Class A Pool Factor - Reported on 12/20/96 Dist. Date as of 11/3
0.333333
D. Receivables Balances
1. Principal Receivables as of close of business on the last day
of the preceding Due Period
1,110,429,993.16
2. Finance Charge and Administrative Receivables as of the close
of business on the last day of the preceding Due Period
106,231,841.84
E. Class B Certificates
1. Class B Invested Amount as of the end of the Payment Date
22,500,000.00
2. Available Collateral Invested Amount as of the end of the Pay
17,045,454.55
CLASS B CERTIFICATEHOLDER'S STATEMENT
A. Information Regarding Distributions
1. Total distribution per $1,000 interest
75.50
2. Principal distribution per $1,000 interest
0.00
3. Interest distribution per $1,000 interest
75.50
B. Performance of Trust
1. Collections of Receivables
(a) Total Collections
1,300,113,507.67
(b) Collections of FC&A
294,624,967.09
(c) Collections of Principal
1,005,488,540.58
2. Allocation of Receivables
(a) First Due Period 6.00%
(b) Second Due Period 6.00%
(c) Third Due Period 6.00%
(d) Fourth Due Period 6.00%
(e) Fifth Due Period 6.00%
(f) Sixth Due Period 6.51%
(g) Seventh Due Period 7.10%
(h) Eighth Due Period 7.82%
(i) Ninth Due Period 8.70%
(j) Tenth Due Period 9.81%
(k) Eleventh Due Period 11.23%
(l) Twelvth Due Period 13.15%
3. Class B Principal
(a) Total Amount Paid / Deposited to
the Principal Funding Account
NA
(b) Total amount on deposit in Principal
Funding Account
NA
4. Delinquent Balances (at 12/20/95 distribution date) (Gross/Gross)
(a) 30 - 59 days (Del Stat 1) -- ($) 53,365,145.10
(%) 4.39%
(b) 60 - 89 days (Del Stat 2) -- ($) 26,348,296.69
(%) 2.17%
(c) 90+ days (Del Stat 3+) -- ($) 88,729,073.50
(%) 7.29%
5. Class B Investor Default Amount
1,120,771.18
<PAGE>
CLASS B CERTIFICATEHOLDER'S STATEMENT
6. Class B Investor Charge-Offs;
Reimbursement of Charge-Offs.
(a) Class B Investor Charge-Offs and other reductions, if any,
for the Distribution Date(s) with respect to the
Payment Date
0.00
(b) The amount of Item 6(a) per $1,000 interest
0.00
(c) Total reimbursed to Trust in respect of Class B
Investor Charge-Offs and other reductions
0.00
(d) The amount of Item 6(c) per $1,000 interest
0.00
(e) The amount, if any, by which the outstanding principal
balance of of the Class B Certificates exceeds the Class B
Invested Amount as of the end of such Payment Date
0.00
7. Available Cash Collateral Amount
(a) Available Cash Collateral Amount at close of business
on the Payment Date
0.00
(b) Available Cash Collateral Amount as a percent of the
Class B Invested Amount, each at close of business on the
Payment Date
0.00
8. Available Collateral Invested Amount
17,045,454.55
9. Deficit Controlled Amortization Amount for such Payment Date
0.00
C. Class B Pool Factor - Reported on 12/20/96 Dist. Date as of 11/3
1.000000
D. Receivables Balances
1. Principal Receivables as of close of business on the last day
of the preceding Due Period
1,110,429,993.16
2. Finance Charge and Administrative Receivables as of the close
of business on the last day of the preceding Due Period
106,231,841.84
<PAGE>
*******************************************************************
Household Finance Corporation
HRSI Funding, Inc.
Household Private Label Credit Card Master Trust II, Series 1994-2
*******************************************************************
Sum of 1/22/96-12/20/96
Distribution Dates
CLASS A CERTIFICATEHOLDER'S STATEMENT
A. Information Regarding Distributions
1. Total distribution per $1,000 interest
78.00
2. Principal distribution per $1,000 interest
0.00
3. Interest distribution per $1,000 interest
78.00
B. Performance of Trust
1. Collections of Receivables
(a) Total Collections
1,300,113,507.67
(b) Collections of Finance Charge & Administrative Receivable
294,624,967.09
(c) Collections of Principal
1,005,488,540.58
2. Allocation of Receivables
(a) First Due Period 82.00%
(b) Second Due Period 82.00%
(c) Third Due Perio 82.00%
(d) Fourth Due Period 82.00%
(e) Fifth Due Period 82.00%
(f) Sixth Due Period 82.00%
(g) Seventh Due Period 82.00%
(h) Eighth Due Period 82.00%
(i) Ninth Due Period 82.00%
(j) Tenth Due Period 82.00%
(k) Eleventh Due Period 82.00%
(l) Twelvth Due Period 82.00%
3. Class A Principal
(a) Total Amount Paid / Deposited to
Principal Funding Account
0
(b) Total amount on deposit in Principal
Funding Account
0
4. Delinquent Balances (at 12/20/95 distribution) (Gross/Gross)
(a) 30 - 59 days (Del Stat 1) -- ($) 53,365,145.10
(%) 4.39%
(b) 60 - 89 days (Del Stat 2) -- ($) 26,348,296.69
(%) 2.17%
(c) 90+ days (Del Stat 3+) -- ($) 88,729,073.50
(%) 7.29%
5. Class A Investor Default Amount 14,482,902.13
<PAGE>
CLASS A CERTIFICATEHOLDER'S STATEMENT
6. Class A Investor Charge-Offs;
Reimbursement of Charge-Offs.
(a) Class A Investor Charge-Offs, if any, for the Distribution
Date(s) with respect to the Payment Date
0.00
(b) The amount of Item 6(a) per $1,000 interest
0.00
(c) Total reimbursed to Trust in respect of Class A
Investor Charge-Offs 0.00
(d) The amount of Item 6(c) per $1,000 interest
0.00
(e) The amount, if any, by which the outstanding principal
balance of the Class A Certificates exceeds the Class A
Invested Amount as of the end of such Payment Date
0.00
7. Allocable Servicing Fee paid for the Distribution
Date(s) with respect to the Payment Date 7,500,000.00
8. Deficit Controlled Amortization Amount for such Payment Date
0.00
C. Class A Pool Factor - Reported on 12/20/96 Dist. Date as of 11/3
1.00000000
D. Receivables Balances
1. Principal Receivables as of close of business on the last day
of the preceding Due Period
1,110,429,993.16
2. Finance Charge and Administrative Receivables as of the close
of business on the last day of the preceding Due Period
106,231,841.84
E. Class B Certificates
1. Class B Invested Amount as of the end of the Payment Date
22,500,000.00
2. Available Collateral Invested Amount as of the end of the Pay
45,000,000.00
<PAGE>
CLASS B CERTIFICATEHOLDER'S STATEMENT
A. Information Regarding Distributions
1. Total distribution per $1,000 interest
80.00
2. Principal distribution per $1,000 interest
0.00
3. Interest distribution per $1,000 interest
80.00
B. Performance of Trust
1. Collections of Receivables
(a) Total Collections 83,948,373.91
(b) Collections of FC&A 20,550,857.89
(c) Collections of Principal 63,397,516.02
2. Allocation of Receivables
(a) First Due Period 6.00%
(b) Second Due Period 6.00%
(c) Third Due Period 6.00%
(d) Fourth Due Period 6.00%
(e) Fifth Due Period 6.00%
(f) Sixth Due Period 6.00%
(g) Seventh Due Period 6.00%
(h) Eighth Due Period 6.00%
(i) Ninth Due Period 6.00%
(j) Tenth Due Period 6.00%
(k) Eleventh Due Period 6.00%
(l) Twelvth Due Period 6.00%
3. Class B Principal
(a) Total Amount Paid / Deposited to
the Principal Funding Account
NA
(b) Total amount on deposit in Principal
Funding Account
NA
4. Delinquent Balances (at 12/20/95 distribution) (Gross/Gross)
(a) 30 - 59 days (Del Stat 1) -- ($) 53,365,145.10
(%) 4.39%
(b) 60 - 89 days (Del Stat 2) -- ($) 26,348,296.69
(%) 2.17%
(c) 90+ days (Del Stat 3+) -- ($) 88,729,073.50
(%) 7.29%
5. Class B Investor Default Amount
1,059,724.55
<PAGE>
CLASS B CERTIFICATEHOLDER'S STATEMENT
6. Class B Investor Charge-Offs;
Reimbursement of Charge-Offs.
(a) Class B Investor Charge-Offs and other reductions, if any,
for the Distribution Date(s) with respect to the
Payment Date
0.00
(b) The amount of Item 6(a) per $1,000 interest
0.00
(c) Total reimbursed to Trust in respect of Class B
Investor Charge-Offs and other reductions
0.00
(d) The amount of Item 6(c) per $1,000 interest
0.00
(e) The amount, if any, by which the outstanding principal
balance of of the Class B Certificates exceeds the Class B
Invested Amount as of the end of such Payment Date
0.00
7. Available Cash Collateral Amount
(a) Available Cash Collateral Amount at close of business
on the Payment Date
0.00
(b) Available Cash Collateral Amount as a percent of the
Class B Invested Amount, each at close of business on the
Payment Date
0.00
8. Available Collateral Invested Amount
45,000,000.00
9. Deficit Controlled Amortization Amount for such Payment Date
0.00
C. Class B Pool Factor - Reported on 12/20/96 Dist. Date as of 11/3
1.00000000
D. Receivables Balances
1. Principal Receivables as of close of business on the last day
of the preceding Due Period 1,110,429,993.16
2. Finance Charge and Administrative Receivables as of the close
of business on the last day of the preceding Due Period
106,231,841.84
