| SECURITIES AND EXCHANGE        COMMISSIONWashington, D.C. 20549 
FORM 10-K 
X      ANNUAL        REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE                          SECURITIES        EXCHANGE ACT OF 1934 
OR 
_      TRANSITION        REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE                                        SECURITIES        EXCHANGE ACT OF 1934 
For the fiscal year ended        December 31, 2002 
Commission file number        0-24776 
SEARS CREDIT ACCOUNT        MASTER TRUST II(Exact name of        registrant as specified in its charter) 
Illinois         (State of Organization) Not        Applicable        (I.R.S. Employer Identification No.) 
c/o SRFG, Inc.        3711 Kennett Pike        Greenville, Delaware         (Address of principal executive offices) 
19807        (Zip Code)         
Registrant's telephone number, including        area code: (302) 434-3176         
Securities registered pursuant to        Section 12(b) of the Act:  
      Title of each classto be so registered
Name of each exchange      on which each class     is to be      registered        
None
Not Applicable
Securities registered pursuant to Section 12(g)of the Act:

6.05% Class A Series 1995-5 Master Trust    Certificates    6.20% Class B Series 1995-5 Master Trust Certificates    7.00% Class A Series 1996-3 Master Trust Certificates    7.10% Class B Series 1996-3 Master Trust Certificates    6.20% Class A Series 1997-1 Master Trust Certificates    6.40% Class B Series 1997-1 Master Trust Certificates    5.25% Class A Series 1998-2 Master Trust Certificates

    5.65% Class A Series 1999-1 Master Trust Certificates    6.35% Class A Series 1999-2 Master Trust Certificates    6.45% Class A Series 1999-3 Master Trust Certificates    7.25% Class A Series 2000-1 Master Trust Certificates    7.50% Class B Series 2000-1 Master Trust Certificates    6.75% Class A Series 2000-2 Master Trust Certificates    7.00% Class B Series 2000-2 Master Trust Certificates    Floating Rate Class A Series 2000-3 Master Trust Certificates    Floating Rate Class B Series 2000-3 Master Trust Certificates    Floating Rate Class A Series 2000-4 Master Trust Certificates    Floating Rate Class B Series 2000-4 Master Trust Certificates    Floating Rate Class A Series 2001-1 Master Trust Certificates    Floating Rate Class B Series 2001-1 Master Trust Certificates    Floating Rate Class A Series 2001-2 Master Trust Certificates    Floating Rate Class B Series 2001-2 Master Trust Certificates    Floating Rate Class A Series 2001-3 Master Trust Certificates    Floating Rate Class B Series 2001-3 Master Trust Certificates    Floating Rate Class A Series 2002-1 Master Trust Certificates    Floating Rate Class B Series 2002-1 Master Trust Certificates    Floating Rate Class A Series 2002-2 Master Trust Certificates    Floating Rate Class B Series 2002-2 Master Trust Certificates    Floating Rate Class A Series 2002-3 Master Trust Certificates    Floating Rate Class B Series 2002-3 Master Trust Certificates    Floating Rate Class A Series 2002-4 Master Trust Certificates    Floating Rate Class B Series 2002-4 Master Trust Certificates    Floating Rate Class A Series 2002-5 Master Trust Certificates    Floating Rate Class B Series 2002-5 Master Trust Certificates                            (Title    of Class)
Registrant (1) has filed all reports required tobe filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 duringthe preceding 12 months and (2) has been subject to such filing requirements forthe past 90 days.  Yes  [ x]     No  [  ]

Indicate by check mark if disclosure ofdelinquent filers pursuant to Item 405 of Regulation S-K is not containedherein, and will not be contained, to the best of registrant's knowledge, indefinitive proxy or information statements incorporated by reference in Part IIIof this Form 10-K or any amendment to this Form 10-K. [ x ] 

Indicate by check mark whether the registrant isan accelerated filer (as defined in Exchange Act Rule 12b-2). Yes [  ]      No [ x ]

State the aggregate market value of the votingand non-voting common equity held by non-affiliates of the registrant, as of thelast business day of the registrant's most recently completed second fiscalquarter: $0.00.

Documents incorporated by reference: None

PART I

Item 1.    Business

           The Sears Credit Account Master Trust II (the "Trust") was formedpursuant to the Pooling and Servicing Agreement dated as of July 31, 1994, asamended (the "Pooling and Servicing Agreement") among Sears, Roebuckand Co. ("Sears") as Servicer, its wholly-owned subsidiary, SRFG, Inc.("SRFG") as Seller, and The Bank of New York (as successor trustee toBank One, N.A.) as trustee (the "Trustee"). The Trust's only businessis to act as a passive conduit to permit investment in a pool of retail consumerreceivables.

Item 2.    Properties

           The property of the Trust includes a portfolio of receivables (the"Receivables") arising in selected accounts under selected creditplans of Sears (the "Accounts") and all monies received in payment ofthe Receivables. At the time of the Trust's formation, and on certain AdditionDates thereafter, Sears sold and contributed to SRFG, which in turn conveyed tothe Trust, all Receivables existing under the Accounts designated as such at orprior to such time, and will continue to transfer additional Receivables arisingunder the Accounts, and in the future may transfer Receivables in additionalAccounts to the Trust from time to time, until the termination of the Trust. Atcertain times in the life of the Trust, pursuant to the Pooling and ServicingAgreement, SRFG has removed from the Trust the Receivables existing undercertain Accounts and will no longer transfer additional receivables arisingthereunder to the Trust. Information related to the performance of theReceivables during 2002 is set forth in the ANNUAL STATEMENTS filed as Exhibits20(a) to 20(r) to this Annual Report on Form 10-K. Capitalized terms not definedherein have the meaning assigned to them in the Pooling and Servicing Agreement.

Item3.    Legal Proceedings

           None

Item4.    Submission of Matters to a Vote of Security Holders

           None

PART II

Item5.    Market for Registrant's Common Equity and RelatedStockholder Matters

           Investor Certificates are held and delivered in book-entry form through thefacilities of The Depository Trust Company ("DTC"), a "clearingagency" registered pursuant to the provisions of Section 17A of theSecurities Exchange Act of 1934, as amended. The sole definitive InvestorCertificate is held by Cede & Co., the nominee of DTC.

Item6.    Selected Financial Data

           Not applicable.

Item 7.    Management'sDiscussion and Analysis of Financial Condition and Results of              Operations

           Not applicable.

Item 7A.    Quantitative andQualitative Disclosures About Market Risk

           Not applicable.

Item 8.    FinancialStatements and Supplementary Data

           Not applicable.

Item 9.    Changes in andDisagreements with Accountants on Accounting and Financial               Disclosure

           None

PART III

Item 10.   Directors andExecutive Officers of the Registrant

           Not applicable. The Registrant does not have directors or executive officers.

Item 11.   Executive Compensation

           Not applicable. The Registrant does not have employees.

Item12.   Security Ownership of Certain Beneficial Owners andManagement and                RelatedStockholder Matters

 

           As of March 15, 2003, 100% of the Investor Certificates were held in the nomineename of Cede & Co. for beneficial owners.

           SRFG, as of March 15, 2003, owned 100% of the Seller Certificate, whichrepresented beneficial ownership of a residual interest in the assets of theTrust as provided in the Pooling and Servicing Agreement.

Item13.   Certain Relationships and Related Transactions

           None

PART IV

Item 15.   Exhibits,Financial Statement Schedules, and Reports on Form               8-K

(a) Exhibits:
The Exhibit Index hereto is incorporated herein    by reference.
(b) Reports on Form 8-K:

Current reports on Form 8-K are filed on or    before the Distribution Date each month (on, or the first business day    after, the 15th of the month). The reports include, as an exhibit, the    MONTHLY INVESTOR CERTIFICATEHOLDERS' STATEMENT. Current Reports on Form 8-K    were filed on October 15, 2002, November 15, 2002, and December 16, 2002.

 

 

 

SIGNATURES

       Pursuant to the requirements of Section 13 of the Securities Exchange Act of1934, the Registrant has duly caused this report to be signed on its behalf bythe undersigned, thereunto duly authorized.

Sears Credit Account Master Trust II                      (Registrant)

By: SRFG, Inc.            (Originator of the Trust)

By: /s/ William K. Phelan       William K. Phelan                   Vice President and            Controller

Dated: March 28, 2003

 
I, George F. Slook,      President and Chief Executive Officer of SRFG, Inc., certify that:  1. I have reviewed this annual      report on Form 10-K, and all reports on Form 8-K containing distribution      or servicing reports filed in respect of periods included in the year      covered by this annual report, of Sears Credit Account Master Trust II;  2. Based on my      knowledge, the information in these reports, taken as a whole, does not      contain any untrue statement of a material fact or omit to state a      material fact necessary to make the statements made, in light of the      circumstances under which such statements were made, not misleading as of      the last day of the period covered by this annual report;  3. Based on my      knowledge, the distribution or servicing information required to be      provided to the trustee by the servicer under the pooling and servicing,      or similar, agreement for inclusion in these reports is included in these      reports;  4. Based on my      knowledge and upon the annual compliance statement included in the report      and required to be delivered to the trustee in accordance with the terms      of the pooling and servicing, or similar, agreement, and except as      disclosed in the reports, the servicer has fulfilled its obligations under      the servicing agreement; and  5. The reports      disclose all significant deficiencies relating to the servicer's      compliance with the minimum servicing standards based upon the report      provided by an independent public accountant, after conducting a review in      compliance with the Uniform Single Attestation Program for Mortgage      Bankers or similar procedure, as set forth in the pooling and servicing      agreement, or similar, that is included in these reports.
 

Date: March 28, 2003

/s/ George F. SlookGeorge F. Slook, President andChief Executive Officer of SRFG, Inc.
 

 

EXHIBIT INDEX

Exhibit No.

 
20.
2002 ANNUAL STATEMENTS prepared by the        Servicer.          (a)        (b)        (c)        (d)        (e)        (f)        (g)        (h)        (i)        (j)        (k)        (l)        (m)        (n)        (o)        (p)        (q)        (r)
Series 1995-5        Series 1996-3        Series 1997-1        Series 1998-2        Series 1999-1        Series 1999-2        Series 1999-3        Series 2000-1        Series 2000-2        Series 2000-3        Series 2000-4        Series 2001-1        Series 2001-2        Series 2001-3        Series 2002-1        Series 2002-2        Series 2002-3        Series 2002-4
         
99.(a)
Annual Independent Accountants' Report        pursuant to Section 3.06 of the Pooling and Servicing Agreement.         
99.(b)
Annual Statement of Compliance from the        Servicer. |
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