**Exhibit 99.4**

 

Reportof Management on Compliance

 

# **February 15, 2006**

# ** **

We, as members of management of Target National Bank, as servicer, areresponsible for complying with the administration and servicing requirements ofArticle III, Article IV and Section 8.8 of the Amended and Restated Pooling andServicing Agreement, dated April 28, 2000(as may be amended and supplemented from time to time, the “Pooling and Servicing Agreement”) and the applicableprovisions of the Series 2002-1 Supplement, dated July 2, 2002, and the Series2005-1 Supplement, dated November 9, 2005 (together, the “Supplements”) to the Target Credit Card Master Trust asset forth in Exhibit A. We also are responsible for establishing andmaintaining effective internal control over compliance with the administrationand servicing requirements of Article III, Article IV and Section 8.8 of thePooling and Servicing Agreement and the applicable provisions of theSupplements, as set forth in Exhibit A. We have performed an evaluation ofTarget National Bank’s compliance with the requirements of the administrationand servicing requirements of Article III, Article IV and Section 8.8 of thePooling and Servicing Agreement and the applicable provisions of theSupplements as set forth in Exhibit A, as of December 31, 2005 and for thefiscal year then ended. Based on this evaluation, we assert that as of and forthe fiscal year ended December 31, 2005, Target National Bank complied, in allmaterial respects, with the administration and servicing requirements ofArticle III, Article IV and Section 8.8 of the Pooling and Servicing Agreementand the applicable provisions of the Supplements, as set forth in Exhibit A.

 
|   | Very truly yours,                |
|--------|----------------------------------|
|   |                             |
|   |                             |
|   | /s/ Terrence J. Scully           |   |
|   | Terrence J. Scully               |
|   | President, Target  National Bank |
|   |                             |
|   |                             |
|   | /s/ Thomas A. Swanson            |   |
|   | Thomas A. Swanson                |
|   | Vice President and  Cashier,     |
|   | Target National Bank             |
|        |                                  |  |  |

 

1

----

 

**Exhibit A**

** **

**ServicingStandards**

 

Management of the Bankidentified the following standards which are, in management’s opinion,applicable to servicing credit card receivables and consistent with theapplicable provisions of Article III, Article IV and Section 8.8 of the Amendedand Restated Pooling and Servicing Agreement, dated April 28, 2000 (as may beamended and supplemented from time to time, the “Agreement”), as supplementedby the Series 2002-1 Supplement, dated July 2, 2002, and the Series 2005-1Supplement, dated November 9, 2005, to the Target Credit Card Master Trust(together, the “Supplements”).

 

**I.****                            ****Finance Charges**

 

1.               Finance charges arecalculated in accordance with the applicable cardholder agreements based oncardholder average daily balances.

 

2.               Finance charges areaccurately reflected on the customers’ monthly billing statements.

 

**II.****                        ****Investor Accounting and Reporting**

 

1.               The monthlycertificateholders’ statements are prepared and sent to investors or trusteeson a monthly basis.

 

2.               The annual and monthlycertificateholders’ statements shall reconcile to the servicers’ accountingrecords.

 

3.               The annual and monthlycertificateholders’ statements are mathematically accurate and are prepared inaccordance with the applicable provisions of the Agreement and the Supplements.

 

2

----

 

**III. Accounting**

 

1.               The servicing entity’srecords of individual credit card receivable balances shall agree with, orreconcile to, the records of debtors with respect to the unpaid principalbalance.

 

**IV. Write-Offs**

 

1.               Write-offs of cardholderbalances shall be completed within the applicable Office of the Comptroller ofthe Currency regulations and accounting principles generally accepted in theUnited States.

 

3

----