Massachusetts may be heading closer to a settlement agreement with Bank of America Corp., as the bank agreed to redeem $43 million of auction-rate securities owned by the Massachusetts Turnpike Authority and the Massachusetts Housing Partnership.

Secretary of the Commonwealth William Francis Galvin continues to negotiate with Bank of America regarding the sale of auction-rate securities to Massachusetts investors, but in the meantime Bank of America will buy at par $18 million in auction-rate investments from MassPike, while the MHP will gain about $25 million for its ARS, according to Galvin spokesman Brian McNeff.

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