UPDATE 1-Bank of NY Mellon wins US bailout plan contract

(New throughout, adds NEW YORK to dateline)

NEW YORK/WASHINGTON, Oct 14 (Reuters) - The U.S. Treasury Department said Bank of New York Mellon Corp (BK.N), the world's largest custodian of assets, will oversee much of its $700 billion emergency financial industry rescue plan.

Terms were not disclosed. Treasury said on Tuesday the bank will offer "custodial, accounting, auction management and other infrastructure services needed to administer the complex portfolio of troubled assets the department will purchase."

Bank of New York Mellon was one of 70 companies that bid for the three-year contract, and one of 10 that met Treasury's minimum eligibility requirements to oversee the Troubled Asset Relief Program. Bidders were required to have at least $500 billion of U.S. assets under custody.

Custodians provide back-office services, typically to institutional clients. Bank of New York Mellon oversees more than $23 trillion of custodial assets worldwide. Its main rivals in this area include JPMorgan Chase & Co (JPM.N), Northern Trust Corp (NTRS.O) and State Street Corp (STT.N).

Bank of New York Mellon is also one of nine financial institutions that Treasury said on Tuesday got capital injections as part of a $250 billion plan designed to boost confidence in the financial system.

Treasury said it would not disclose fees that Bank of New York Mellon will receive until other asset management contracts are awarded. President George W. Bush signed the $700 billion bailout package into law earlier this month.

In late afternoon trading, Bank of New York Mellon shares were up 12.6 percent to $34.55 on the New York Stock Exchange. The 24-member KBW Bank Index .BKX, which includes the bank, was up 11.8 percent. (Reporting by Patrick Rucker and Jonathan Stempel; Editing by Tim Dobbyn)