NY Fed: 10-yr term for planned JPM loan to buy Bear

NEW YORK, March 24 (Reuters) - The Federal Reserve Bank of New York said on Monday a subordinated note and a loan in a takeover offer by JPMorgan Chase & Co. (JPM.N) of Bear Stearns Cos BSC.N will have a term of 10 years, and will be renewable by the New York Fed.

The rate due on the loan is the primary credit rate, which currently stands at 2.50 percent and fluctuates with the discount rate, the New York Fed said. The term on the subordinated note is the primary credit rate plus 475 basis points, which currently totals 7.25 percent, the New York Fed said.

The repayment will begin on the second anniversary of the loan, unless the New York Fed decides payment is to begin earlier. (Reporting by Chris Reese and Richard Leong; Editing by Diane Craft)