ITEM 1.	BUSINESS
The World Financial Network Credit Card Master Trust (the "Trust") was formed pursuant to a pooling and servicing agreement dated as of January 17, 1996 (the "Pooling Agreement") between World Financial Network National Bank (the "Bank"), as transferor (the "Transferor") and as servicer (the "Servicer"), and the Bank of New York, as trustee (the "Trustee"). The Bank sold to the Trust approximately $1.3 billion of credit card receivables arising in a portfolio of consumer open end credit card accounts (the "Trust Portfolio"). The Trust Portfolio includes the private label credit card programs of a number of national retail and catalogue entities.
The Trust has issued three series of certificates - Series 1996-A, Series 1996-B and Series 1996-VFC. The Series 1996-A and Series 1996-B certificates have been distributed to the public. The Series 1996-VFC certificates have been privately placed. Each outstanding Series includes one or more classes of certificates as well as certain Collateral Interests. The Transferor is required under the Pooling Agreement to maintain a minimum 7% interest in the Trust Portfolio (9% November through January) (the "Transferor's Interest").
The Bank services the receivables pursuant to the Pooling Agreement and is compensated for acting as the servicer.
ITEM 2.
ITEM 2.	PROPERTIES
There is nothing to report with regard to this item.
ITEM 3.
ITEM 3.	LEGAL PROCEEDINGS
There is nothing to report with regard to this item.
ITEM 4.
ITEM 4.	SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
There is nothing to report with regard to this item.
PART II
ITEM 5.
ITEM 5.	MARKET FOR REGISTRANT'S COMMON EQUITY AND RELATED 		STOCKHOLDER MATTERS
To the knowledge of the Bank and the Trust, there is an over the counter market in the Trust's Series 1996-A and Series 1996-B Certificates, although the frequency of transactions varies substantially over time.
ITEM 6.
ITEM 6.	SELECTED FINANCIAL DATA
The selected financial data has been omitted since the required information is included in the financial statements.
ITEM 7.
ITEM 7.	MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The Trust was formed January 17, 1996 pursuant to the Pooling and Servicing Agreement between World Financial Network National Bank, as seller (the "Seller"), Transferor and Servicer and The Bank of New York, as trustee (the "Trustee"). The Seller sold to the Trust approximately $1.3 billion of receivables arising from certain proprietary credit card programs.
The Trust has sold three series of certificates representing an undivided interest in the Trust Portfolio. In addition, the Trust has sold certain Collateral Interests in the Trust Portfolio. The Transferor is required under the Pooling Agreement to maintain a minimum 7% interest in the Trust Portfolio (9% November through January). The following series of certificates has been issued by the Trust as of February 1, 1997 (dollars in thousands):
% of Trust Description $ Issued Portfolio -------------------- --------------- --------------
Series 1996 A, Class A $445,500 33.7% Series 1996 A, Class B $46,750 3.5% Series 1996 B, Class A $283,500 21.5% Series 1996 B, Class B $29,750 2.3% Series 1996-VFC $265,750 20.1%
The Series 1996-A and Series 1996-B certificates have been distributed to the public under prospectuses dated April 9, 1996.
The Bank is the originator of the receivables and continues to service the receivables for the Trust and receives a fee for providing such servicing. Under the Pooling Agreement, new receivables generated under the specified propriety credit card programs are required to be sold to the Trust on a daily basis. If there are insufficient new receivables to maintain the required minimum receivable level in the Trust, principal collections are retained by the Trust for the benefit of the certificateholders or until new receivables are available for purchase.
ITEM 8.
ITEM 8.	FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
Cross Reference Sheet - - ------------------------------------------------------------------------------- Caption Page - - ------------------------------------------------------------------------------- Independent Auditors' Report II-1
Statement of Assets and Liabilities Arising from Cash Transactions as of February 1, 1997 II-2
Statement of Distributable Income Arising From Cash Transactions for the period from January 17, 1996 (date of formation) to February 1, 1997 II-3
Notes to Financial Statements II-4
INDEPENDENT AUDITORS' REPORT
To the World Financial Network Credit Card Master Trust
We have audited the accompanying statement of assets and liabilities arising from cash transactions of the World Financial Network Credit Card Master Trust (the "Trust") as of February 1, 1997, and the related statement of distributable income arising from cash transactions for the period from January 17, 1996 (date of formation) to February 1, 1997. These financial statements are the responsibility of the management of the Trust. Our responsibility is to express an opinion of these financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
As described in Note 1, these financial statements were prepared on the cash basis of accounting, which is a comprehensive basis of accounting other than generally accepted accounting principles.
In our opinion, such financial statements present fairly, in all material respects, the assets and liabilities arising from cash transactions of the Trust as of February 1, 1997, and its distributable income arising from cash transactions for the period from January 17, 1996 (date of formation) to February 1, 1997 on the basis of accounting described in Note 1.
By:/s/ Deloitte & Touch LLP ----------------------------------- Deloitte & Touche LLP Columbus, Ohio May 12, 1997
II-1
WORLD FINANCIAL NETWORK CREDIT CARD MASTER TRUST - - ------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES ARISING FROM CASH TRANSACTIONS (in thousands of dollars)
As of Assets February 1, 1997 ------ __________________
Cash Available for Distribution $267,739
Credit Card Receivables 1,321,243 ---------- TOTAL ASSETS $1,588,982 ===========
Liabilities ------------
Income to be Distributed $267,739
Asset-backed Certificates: Series 1996-A 492,250 Series 1996-B 313,250 Series 1996-VFC 265,750 Collateral Interest 135,321 Transferor's Interest 114,672 -------- TOTAL LIABILITIES $1,588,982 ===========
See accompanying Notes to Financial Statements
II-2
WORLD FINANCIAL NETWORK CREDIT CARD MASTER TRUST - - ------------------------------------------------------------------------------
STATEMENT OF DISTRIBUTABLE INCOME ARISING FROM CASH TRANSACTIONS (in thousands of dollars) 	
For The Period From January 17, 1996 (date of formation) to February 1, 1997 ---------------------------- Distributable Income - - --------------------- Allocable to Principal $2,562,474 Allocable to Interest 284,478 ---------- Total Distributable Income $2,846,952 ==========
Income Distributed - - ------------------ Distribution of Principal to Purchase New Receivables $2,320,408 Interest Paid on Asset Backed Certificates 62,854 Servicing Fees 20,596 Distribution to Purchase New Receivables For Amounts Previously Written-Off 76,201 Distribution on Transferor's Interest 99,154 ---------- Income Distributed 2,579,213 ---------- Excess of Distributable Income over Income Distributed (Distributed February 17, 1997) $ 267,739 ==========
See accompanying Notes to Financial Statements.
II-3
WORLD FINANCIAL NETWORK CREDIT CARD MASTER TRUST
NOTES TO FINANCIAL STATEMENTS - - -----------------------------
NOTE 1.		General Information and Accounting Policies
The World Financial Network Credit Card Master Trust (the "Trust") was formed pursuant to a pooling and servicing agreement, dated as of January 17,1996 (the "Pooling Agreement") between World Financial Network National Bank (the "Bank"), as transferor (the "Transferor") and as servicer (the "Servicer") of receivables (the "Receivables") arising in a portfolio of consumer open end credit card accounts (the "Trust Portfolio") and the Bank of New York, as trustee (the "Trustee"). The Trust Portfolio includes the private label credit card programs of a number of national retail and catalogue entities.
The Bank services the receivables pursuant to the Pooling Agreement and is compensated for acting as the servicer. In order to facilitate its servicing functions and minimize administrative burdens and expenses, the Bank retains physical possession of the documents relating to the receivables as custodian for the Trustee. The Trust has no employees.
The financial statements of the Trust are prepared on a cash basis of accounting which differs from financial statements prepared in accordance with generally accepted accounting principles in that interest income and the related assets are recognized when received rather than when earned and distributions to certificateholders are recognized when paid rather than when the obligation is incurred. The statement of assets and liabilities arising from cash transactions reflects the amounts to be distributed on February 17, 1997, which represents the distribution of income received by the Trust for the period January 1 through January 31, 1997.
NOTE 2.	Sale of Certificates
The Trust may issue from time to time asset-backed certificates in one or more Series, which will consist of one or more classes of certificates, representing an undivided ownership interest in the Receivables. As of February 1, 1997 the Trust had issued the following certificates, representing the indicated undivided interest in the Trust Portfolio:
% of Trust Description $ Issued Porfolio - - ------------------------------- --------- -------------
Series 1996 A, Class A $445,500 33.7% Series 1996 A, Class B $46,750 3.5% Series 1996 B, Class A $283,500 21.5% Series 1996 B, Class B $29,750 2.3% Series 1996-VFC $265,750 20.1%
The Series 1996-A and Series 1996-B certificates were distributed to the public pursuant to a Prospectus dated April 9, 1996. The Series 1996-VFC class of certificates has been retained by three conduit banks. Collectively, holders of all Series are referred to as "Certificateholders."
In addition, certain Collateral Interests were issued by the Trust, representing a 10.2% interest in the Trust Portfolio. Such Collateral Interests are held by three banks at February 1, 1997 (the "Collateral Interestholders"). The Transferor is required to maintain a minimum 7% (9% November through January) interest in the Trust Portfolio (the "Transferor's Interest"). The rights of the Collateral Interestholders to receive distributions are subordinate to the rights of the Class A and B Certificateholders and the Transferor's Interest.
NOTE 3.	Principal and Interest Payment
Collections of principal are used by the Trust to purchase new charge card receivables on a daily basis.
Collections of finance charges, which includes late fees, non-sufficient funds check fees and recoveries of amounts previously written-off, are used to pay interest to the Certificateholders, pay servicing fees and to purchase new charge card receivables equal to amounts written-off during the month. Excess finance charge collections, if any, are distributed to the Servicer.
The distribution date is the 15th day of each month (or, if such day is not a business day, the next following business day).
NOTE 4.	Federal Income Taxes
The Trust is not taxable as a corporation for Federal income tax purposes. Accordingly, no provision for income taxes is reflected in the accompanying financial statements.
NOTE 5.	Supplementary Financial Data (unaudited)
The following is a summary of quarterly distributable income arising from cash transactions: (in thousands of dollars):
Servicing Defaulted Transferor's Quarter Ended Principal Interest Fees Receivables Interest Total - - ------------- ---------- -------- --------- ----------- ----------- ----- May 4, 1996 $665,464 $10,974 $5,728 $8,988 $51,006 $742,160 August 3, 1996 $621,533 $19,856 $5,277 $21,743 $15,326 $683,735 November 2, 1996 $627,456 $18,858 $5,681 $27,213 $22,608 $701,816 February 1, 1997 $648,021 $19,981 $5,977 $25,716 $19,546 $719,241 --------- ------- ------ ------- -------- --------- $2,562,474 $69,669 $22,663 $83,660 $108,486 $2,846,952 ========== ======= ======= ======= ======== ==========
II-4
NOTE 6:	Fair Value of Financial Instruments
The fair value of the Trust's credit card receivables approximate their carrying value due to the short maturity and average interest rates approximate current market rates.
The fair value of the asset-backed certificates is estimated to be $1,325,267,000 (carrying value of $1,321,243,000), based on quoted market prices or current market rates for similar securities with similar remaining maturities and interest rates.
ITEM 9.
ITEM 9.	CHANGES AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE
There is nothing to report with regard to this item.
PART III
ITEM 10.
ITEM 10.	DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT
There is nothing to report with regard to this item.
ITEM 11.
ITEM 11.	EXECUTIVE COMPENSATION
There is nothing to report with regard to this item.
ITEM 12.
ITEM 12.	SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND 		MANAGEMENT
There is nothing to report with regard to this item.
ITEM 13.
ITEM 13.	CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS
There is nothing to report with regard to this item.
PART IV
ITEM 14.
ITEM 14.	EXHIBITS, FINANCIAL STATEMENT SCHEDULES AND REPORTS ON 		FORM 8-K
a) Listed below are the documents filed as part of this report:
Ommitted
b) Reports on Form 8-K:
The following current reports on Form 8-K were filed for the fourth quarter of 1996:
Monthly Report Date of Report -------------- -------------- November 1996 December 16, 1996 December 1996 January 15, 1996 January 1997 February 17, 1997
c) Omitted
d) Omitted
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Bank, on behalf of the Trust, has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
By: World Financial Network Credit Card Master Trust World Financial Network National Bank, as Servicer
Date: May 19, 1997 By: /s/ Daniel T. Groomes ----------------- ---------------------------------------- Daniel T. Groomes Vice President Finance