JPMorgan plans callable curve range CDs linked to CMS rates

By Angela McDaniels

Tacoma, Wash., June 2 - JPMorgan Chase Bank, NA plans to price callable curve range certificates of deposit due June 20, 2023 linked to the 30-year and two-year Constant Maturity Swap (CMS) rates, according to a term sheet.

Interest will be payable quarterly and will accrue at 10% per year for the first year. After that, interest will equal 10 times the spread of the 30-year CMS rate over the two-year CMS rate, subject to a floor of 0% and a maximum rate of 10% per year.

Beginning June 20, 2009, the CDs will be callable at par on any interest payment date.

If the CDs are not called, the payout at maturity will be par.

The CDs will price in June and settle on June 20.

J.P. Morgan Securities Inc. will be the agent.

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