Bank of America plans six-month bear accelerated notes tied to S&P 500

By Susanna Moon

Chicago, July 19 - Bank of America Corp. plans to price 0% Bear Accelerated Return Notes due January 2011 based on the performance of the S&P 500 index, according to an FWP filing with the Securities and Exchange Commission.

The payout at maturity will be par of $10 plus triple the absolute value of any decline in the index, up to a maximum return of $10.90 to $11.30 per note. The exact cap will be set at pricing.

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

The notes are expected to price and settle in July.

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

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