New Issue: Bank of America sells $42 million Bear Accelerated Return Notes linked to S&P 500

By Jennifer Chiou

New York, Feb. 18 - Bank of America Corp. priced $42 million of 0% Bear Accelerated Return Notes due Aug. 27, 2010 linked to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.

The payout at maturity will be par of $10.00 plus three times the absolute value of any decline in the index, up to a maximum payout of $11.08 per note.

Investors will lose 1% for every 1% index gain.

Merrill Lynch, Pierce, Fenner & Smith Inc. and First Republic Securities Co., LLC are the underwriters.

Issuer:	Bank of America Corp.
Issue:	Bear Accelerated Return Notes
Underlying index:	S&P 500
Amount:	$42 million
Maturity:	Aug. 27, 2010
Coupon:	0%
Price:	Par of $10
Payout at maturity:	Par plus 300% of the absolute value of any index loss, capped at 10.8%; 1% loss for every 1% index gain
Initial index level:	1,094.87
Pricing date:	Feb. 16
Settlement date:	Feb. 23
Underwriters:	Merrill Lynch, Pierce, Fenner & Smith Inc. and First Republic Securities Co., LLC
Fees:	0.5%
Cusip:	06052H270

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