WASHINGTON - Two Bank of America Corp. subsidiaries will buy back at par about $4.5 billion of auction-rate securities under agreements reached in principle with Massachusetts' top securities regulator and the Securities and Exchange Commission to settle alleged sales practice abuses.

Commonwealth Secretary William F. Galvin announced the settlement yesterday with Banc of America Investment Services Inc. and Banc of America Securities LLC. Linda Chatman Thomsen, director of the SEC's enforcement division, said the commission will soon announce the terms of its settlement with the firm.

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