The Limited, Inc., and Consolidated Subsidiaries - Page 4

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          honored only in one or more of petitioner's stores, and (2) a               
          credit card issued by a third-party bank or other financial                 
          institution and honored by many merchants.                                  
          Petitioner’s Private-Label Credit Cards                                     
               Prior to 1982, petitioner issued no credit cards.                      
               In 1982, petitioner acquired two retailers of women’s                  
          clothing that had preexisting open-end credit plans:  i.e.,                 
          credit plans providing for repeated extensions of credit with no            
          fixed dates for repayment.  Petitioner organized two new                    
          subsidiary corporations to take over the operation of those                 
          credit plans.  Those two corporations were Limited Credit                   
          Services, Inc. (Limited Credit), a Delaware corporation, and                
          World Financial Network, Inc. (WFN), also a Delaware corporation.           
          Limited Credit administered petitioner's open-end credit                    
          operations.  WFN funded the consumer credit associated with the             
          open-end credit systems through a receivables financing facility.           
          Eventually, Limited Credit and WFN came to operate credit plans             
          for some of petitioner's other stores.                                      
               The credit plans operated by Limited Credit were established           
          under the retail installment sales acts enacted in each of the              
          50 States, the District of Columbia, and Puerto Rico.  Limited              
          Credit was required to comply on a State-by-State basis with                
          varying limitations on interest rates, minimum finance charges,             

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Last modified: May 25, 2011