**Exhibit 99.5**

 

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 andRestated Pooling and Servicing Agreement, dated April 28, 2000 (as may beamended and supplemented from time to time, the “Pooling and Servicing Agreement”) and the applicableprovisions of the Series 2002-1 Supplement, dated July 2, 2002, andthe Series 2005-1 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 8.8of the Pooling 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 8.8of the Pooling and Servicing Agreement and the applicable provisions of theSupplements as set forth in Exhibit A, as of December 31, 2005 andfor the fiscal year then ended. Based on this evaluation, we assert that as ofand for the fiscal year ended December 31, 2005, Target National Bankcomplied, in all material respects, with the administration and servicing requirementsof Article III, Article IV and Section 8.8 of the Pooling andServicing Agreement and the applicable provisions of the Supplements, as setforth 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            |
|        |                                 |  |  |

 

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**Exhibit A**

** **

**Servicing Standards**

 

Management of the Bank identified the following standards which are, inmanagement’s opinion, applicable to servicing credit card receivables andconsistent with the applicable provisions of Article III, Article IVand Section 8.8 of the Amended and Restated Pooling and ServicingAgreement, dated April 28, 2000 (as may be amended and supplementedfrom time to time, the “Agreement”), as supplemented by the Series 2002-1Supplement, dated July 2, 2002, and the Series 2005-1 Supplement,dated November 9, 2005, to the Target Credit Card Master Trust (together,the “Supplements”).

 

**I.****                                         FinanceCharges**

 

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

 

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

 

**II.****                                     InvestorAccounting and Reporting**

 

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

 

2.               The annual andmonthly certificateholders’ statements shall reconcile to the servicers’accounting records.

 

3.               The annual andmonthly certificateholders’ statements are mathematically accurate and areprepared in accordance with the applicable provisions of the Agreement and theSupplements.

 

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**III.****                                 Accounting**

 

1.               The servicingentity’s records of individual credit card receivable balances shall agreewith, or reconcile to, the records of debtors with respect to the unpaidprincipal balance.

 

**IV.****                                Write-Offs**

 

1.               Write-offs ofcardholder balances shall be completed within the applicable Office of theComptroller of the Currency regulations and accounting principles generallyaccepted in the United States.

 

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