New Issue: Bank of America prices $22.71 million 11% STEP Income Securities linked to Deere

By Angela McDaniels

Tacoma, Wash., Oct. 22 - Bank of America Corp. priced $22.71 million of 11% STEP Income Securities due Nov. 2, 2010 linked to the common stock of Deere & Co., according to a 424B2 filing with the Securities and Exchange Commission.

Interest is payable quarterly.

The payout at maturity will be par of $10 plus 4.2% if the final share price is greater than or equal to the step level, which is 111% of the initial share price.

If Deere shares finish below the step level but at or above the threshold level - 95% of the initial share price - the payout will be par. Investors will lose 1% for every 1% that the final share price is below the threshold level.

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

Issuer:	Bank of America Corp.
Issue:	STEP Income Securities
Underlying stock:	Deere & Co. (NYSE: DE)
Amount:	$22,705,210
Maturity:	Nov. 2, 2010
Coupon:	11%, payable quarterly
Price:	Par of $10.00
Payout at maturity:	Par plus 4.2% if Deere shares finish at or above the step level; par if shares finish at or above the threshold level but below the step level; full exposure to any decline below the threshold level
Initial share price:	$46.06
Step level:	$51.13, 111% of initial share price
Threshold level:	$43.76, 95% of initial share price
Pricing date:	Oct. 20
Settlement date:	Oct. 27
Underwriters:	Merrill Lynch, Pierce, Fenner & Smith Inc. and First Republic Securities Co., LLC
Fees:	1.75%

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