JPMorgan plans eight-month contingent payment dual-directional CDs linked to Russell 2000, S&P 500

By Angela McDaniels

Tacoma, Wash., June 19 - JPMorgan Chase Bank, NA plans to sell 0% contingent payment dual-directional knock-out certificates of deposit due Feb. 27, 2009 linked to the Russell 2000 and S&P 500 indexes, according to a term sheet.

If the indexes remain within the knock-out levels throughout the life of the CDs, the payout at maturity will be par plus a fixed payment of at least $80 per $1,000 CD. If either index closes outside the knock-out levels, the payout will be par.

For each index, the upper and lower knock-out levels will be at least 12% above and below the initial index level, respectively. The exact fixed payment and knock-out levels will be set at pricing.

The CDs are expected to price on June 25 and settle on June 30.

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

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