**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**WASHINGTON, DC 20549**

 

**FORM 10-K**

 

**(Mark One)**
| ý                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |       | **ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF  THE SECURITIES  EXCHANGE ACT OF 1934**     |
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| **For the fiscal year ended  December 31, 2005**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
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| **o**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | ** ** | **TRANSITION REPORT PURSUANT TO SECTION 13 OR  15(d) OF THE SECURITIES  EXCHANGE ACT OF 1934** |
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| **For the transition period  from                                               to                                               ** |
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**Commission file number 000-25762**

 

**Capital One Funding, LLC, as Depositor**

** **

**on behalf of**

 

**CAPITAL ONE MASTER TRUST**

(Exact name of registrant as specified in its charter)

 

| **New York**                                                                                   | ** ** | **Not applicable**                    |
|------------------------------------------------------------------------------------------------|------------|---------------------------------------|
| (State or other jurisdiction  of incorporation or organization)                                |       | (I.R.S. Employer  Identification No.) |
|                                                                                           |       |                                  |
| **c/o Capital One Funding, LLC  140 East Shore Drive  Room 1071-B  Glen Allen, Virginia** | ** ** | **23059**                             |
| (Address of principal executive offices)                                                       |       | (Zip Code)                            |

 

Registrant’s telephonenumber, including area code: **(804) 290-6959**

 

Securities registeredpursuant to Section 12(b) of the Act: **None.**

 

Securities registeredpursuant to Section 12(g) of the Act:

 

**Class A 6.310% Asset Backed Certificates, Series 1998-1**

**Class B 6.356% Asset Backed Certificates, Series 1998-1**

(Title of Class)

 

Indicate bycheck mark if the registrant is a well-known seasoned issuer, as defined in Rule 405of the Securities Act. oYes  ý  No

 

Indicate by check mark if the registrant is not required to filereports pursuant to Section 13 or Section 15(d) of the Act. oYes ý  No

 

Indicate by check markwhether the registrant (1) has filed all reports required to be filed by Section 13or 15(d) of the Securities Exchange Act of 1934 during the preceding 12months (or for such shorter period that the registrant was required to filesuch reports), and (2) has been subject to such filing requirements forthe past 90 days. Yes  ý  No  o

 

Indicate by check mark ifdisclosure of delinquent filers pursuant to Item 405 of Regulation S-K is notcontained herein, and will not be contained, to the best of registrant’sknowledge, in definitive proxy or information statements incorporated byreference in Part III of this Form 10-K or any amendment to this Form 10-K.ý

 

Indicateby check mark whether the registrant is a large accelerated filer, anaccelerated filer, or a non-accelerated filer. (See definition of “acceleratedfiler” and “large accelerated filer” in Rule 12b-2 of the Exchange Act.(check one)

 

Large accelerated filer   o  Accelerated filer   o  Non-accelerated filer   ý

 

Indicate bycheck mark whether the registrant is shell company (as defined in Rule 12b-2of the Act). o Yes   ýNo

 

State the aggregate marketvalue of the voting and non-voting common equity held by non-affiliates of theregistrant computed by reference to the price at which the common equity waslast sold, or the average bid and asked price of such common equity, as of thelast business day of the registrant’s most recently completed second fiscalquarter.

 

Registrantdoes not have any voting or non-voting common equity.

 

Documents incorporated byreference: None.

 

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* On August 24,1995, Sears Receivables Financing Group, Inc., as originator of SearsCredit Account Master Trust II, was issued a no-action letter (“No-ActionLetter”) by the Securities and Exchange Commission with respect to certain ofthe registrant’s reporting requirements pursuant to Section 13 or 15(d) ofthe Act. This Form 10-K has been prepared in accordance with the terms ofthe No-Action Letter.

 

 

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**PART I**

 
| **Item 1.** | ** ** | **Business.** |
|-------------|------------|---------------|

 

ThisAnnual Report on Form 10-K (the “Report”) is filed with respect to CapitalOne Master Trust (the “Trust”), a trust formed pursuant to an Amended andRestated Pooling and Servicing Agreement, dated as of September 30, 1993(the “Pooling and Servicing Agreement”), amended and restated as of August 1,2002 and January 13, 2006, among Capital One Funding, LLC, as transferor,Capital One Bank, as servicer, and The Bank of New York, as trustee (the “Trustee”).Capitalized terms not defined in this Report have the meaning assigned to themin the Pooling and Servicing Agreement.

 
| **Item 1A.** | ** ** | **Risk  Factors.** |
|--------------|------------|--------------------|

 

Not applicable.

 
| **Item 1B.** | ** ** | **Unresolved Staff Comments.** |
|--------------|------------|--------------------------------|

 

Not applicable.

 
| **Item 2.** | ** ** | **Properties.** |
|-------------|------------|-----------------|

 

Omittedpursuant to the No-Action Letter.

 
| **Item 3.** | ** ** | **Legal  Proceedings.** |
|-------------|------------|-------------------------|

 

Theregistrant knows of no material pending legal proceedings with respect to theTrust, involving the Trust, the Trustee (in its capacity as such), the Trust’sassets, Capital One Bank (in its capacity as servicer) or Capital One Funding,LLC, other than routine litigation incidental to the business of the Trust, theTrustee (in its capacity as such), Capital One Bank (in its capacity asservicer) or Capital One Funding, LLC.

 
| **Item 4.** | ** ** | **Submission  of Matters to a Vote of Security Holders.** |
|-------------|------------|-----------------------------------------------------------|

 

None.

 

**PART II**

 
| **Item 5.** | ** ** | **Market for  Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases  of Equity Securities.** |
|-------------|------------|--------------------------------------------------------------------------------------------------------------------------|

 

Tothe best knowledge of the registrant, there is no established public tradingmarket for the Investor Certificates.

 

Eachpublicly-offered class of the Trust’s Investor Certificates is deliveredand held in

 

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book-entry form throughthe facilities of The Depository Trust Company (“DTC”), a “clearing agency”registered pursuant to the provisions of Section 17A of the SecuritiesExchange Act of 1934, as amended. Each publicly-offered class of the Trust’sInvestor Certificates is represented by one or more certificates registered inthe name of Cede & Co. (“Cede”), the nominee of DTC.

 
| **Item 6.** | ** ** | **Selected  Financial Data.** |
|-------------|------------|-------------------------------|

 

Omittedpursuant to the No-Action Letter.

 
| **Item 7.** | ** ** | **Management’s  Discussion and Analysis of Financial Condition and Results of Operations.** |
|-------------|------------|--------------------------------------------------------------------------------------------------|

 

Omittedpursuant to the No-Action Letter.

 
| **Item 7A.** | ** ** | **Quantitative  and Qualitative Disclosures About Market Risk.** |
|--------------|------------|------------------------------------------------------------------|

 

Notapplicable.

 
| **Item 8.** | ** ** | **Financial  Statements and Supplementary Data.** |
|-------------|------------|---------------------------------------------------|

 

Omittedpursuant to the No-Action Letter.

 
| **Item 9.** | ** ** | **Changes in  and Disagreements with Accountants on Accounting and Financial Disclosure.** |
|-------------|------------|--------------------------------------------------------------------------------------------|

 

None.

 
| **Item 9A.** | ** ** | **Controls  and Procedures.** |
|--------------|------------|-------------------------------|

 

Notapplicable.

 
| **Item 9B.** | ** ** | **Other Information.** |
|--------------|------------|------------------------|

 

Not applicable.

 

**PART III**

 
| **Item 10.** | ** ** | **Directors  and Executive Officers of the Registrant.** |
|--------------|------------|----------------------------------------------------------|

 

Omittedpursuant to the No-Action Letter.

 
| **Item 11.** | ** ** | **Executive  Compensation.** |
|--------------|------------|------------------------------|

 

Omittedpursuant to the No-Action Letter.

 

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| **Item 12.** | ** ** | **Security  Ownership of Certain Beneficial Owners and Management and Related Stockholder  Matters.** |
|--------------|------------|-------------------------------------------------------------------------------------------------------|

 

Eachpublicly-offered class of Investor Certificates is represented by one ormore certificates registered in the name of Cede, the nominee of DTC, and aninvestor holding an interest in such class of Investor Certificates is notentitled to receive a certificate representing such interest except in limitedcircumstances set forth in the Pooling and Servicing Agreement. Accordingly,Cede is the sole holder of record of such Investor Certificates, which it holdson behalf of brokers, dealers, banks, and other direct participants in the DTCsystem. Such direct participants may hold the investor certificates fortheir own accounts or for the accounts of their customers. The name and addressof Cede is Cede & Co., c/o The Depository Trust Company, 55 WaterStreet, New York, NY 10041.

 

CapitalOne Funding, LLC owns 100% of the Transferor Certificate, which representsbeneficial ownership of a residual interest in the assets of the Trust asprovided in the Pooling and Servicing Agreement.

 
| **Item 13.** | ** ** | **Certain  Relationships and Related Transactions.** |
|--------------|------------|------------------------------------------------------|

 

Theregistrant knows of no transaction or series of transactions during themost recently completed fiscal year, or any currently proposed transaction or series oftransactions, in an amount exceeding $60,000, involving the Trust in which anyInvestor Certificateholder identified in Item 12 above or any other beneficialowner of more than five percent of Investor Certificates known to theregistrant had or will have a direct or indirect material interest.

 
| **Item 14.** | ** ** | **Principal  Accounting Fees and Services.** |
|--------------|------------|----------------------------------------------|

 

Notapplicable.

 

**PART IV**

 
| **Item 15.** | ** ** | **Exhibits  and Financial Statement Schedules.** |
|--------------|------------|--------------------------------------------------|

 

(a)          (1)          Omitted pursuant to the No-Action Letter.

(2)          Omitted pursuant to the No-Action Letter.

(3)          The exhibits filed in response to Item 601 ofRegulation S-K are listed in the Exhibit Index.

 

(b)                                 See (a)(3) above.

 

(c)                                  Omitted pursuant to the No-Action Letter.

 

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**SIGNATURES**

 

Pursuantto the requirements of Section 13 or 15(d) of the Securities ExchangeAct of 1934, the registrant has duly caused this report to be signed on itsbehalf by the undersigned, thereunto duly authorized.

 

 
| Date: March 29, 2006 | Capital One Funding, LLC              |
|---------------------------|---------------------------------------|
|                      | Acting solely in its capacity as      |
|                      | depositor of Capital One Master Trust |
|                      |                                  |
|                      |                                  |
|                      | By:                                   | /s/ Stephen Linehan |   |
|                      | Name:                                 | Stephen Linehan |   |
|                      | Title:                                | President, Capital One  Funding, LLC |
|                           |                                       |  |  |  |  |

 

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**EXHIBIT INDEX**

 

Exhibit No.

 
| 31.1   |   | Certification pursuant to Section 302  of the Sarbanes-Oxley Act of 2002 and relevant rules and regulations of  the Securities and Exchange Commission. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                              |
| 99.0   |   | Capital One Master Trust  Aggregated Data for 2005.                                                                                                               |
|   |   |                                                                                                                                                              |
| 99.1   |   | 2005 Annual  Certificateholders’ Statements prepared by the Servicer.                                                                                        |
|   |   |                                                                                                                                                              |
|   |   | (a)                                                                                                                                                               | Series 1998-1 |   |
|   |   | (b)                                                                                                                                                               | Series 1999-3 |   |
|   |   | (c)                                                                                                                                                               | Series 2000-3 |   |
|   |   | (d)                                                                                                                                                               | Series 2001-1 |   |
|   |   | (e)                                                                                                                                                               | Series 2001-3 |   |
|   |   | (f)                                                                                                                                                               | Series 2001-5 |   |
|   |   | (g)                                                                                                                                                               | Series 2001-6 |   |
|   |   | (h)                                                                                                                                                               | Series 2001-8 |   |
|   |   | (i)                                                                                                                                                               | Series 2002-1 |   |
|   |   | (j)                                                                                                                                                               | Series 2002-2 |   |
|   |   | (k)                                                                                                                                                               | Series 2002-4 |   |
|   |   |                                                                                                                                                              |
| 99.2   |   | Annual Independent  Accountants’ Report pursuant to Section 3.06 of the Pooling and  Servicing Agreement.                                               |
|   |   |                                                                                                                                                              |
| 99.3   |   | Report of Management on  Compliance.                                                                                                                              |
|   |   |                                                                                                                                                              |
| 99.4   |   | Annual Statement of  Compliance from the Servicer.                                                                                                                |

 

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