Bank of America Corp. agreed to reduce its derivative claims against Lehman Brothers Holdings Inc. entities by $4.5 billion and return about $356 million to Lehman to settle disputes over derivatives obligations, according to a court filing.

Under two accords, Charlotte-based Bank of America will drop its appeal of a judge's order to return $501 million in deposits it took from Lehman in 2008 during the financial crisis. The bank's Merrill Lynch International unit also will reduce its derivative claims by about $3 billion, according to documents filed Wednesday in U.S. Bankruptcy Court in Manhattan.

Bank of America and Merrill will support Lehman's liquidation plan under the settlements. Bank of America's acquisition of Merrill Lynch & Co. was completed in January 2009.

The transactions at issue include interest-rate swaps, credit derivatives on mortgage-backed bonds and foreign exchange options, according to the documents. Bank of America will have a $402 million non-subordinated general unsecured claim against Lehman Brothers Special Financing Inc. in connection with pre-bankruptcy transactions. Merrill Lynch entities will have a similar claim of $1.1 billion, according to the filings.

Bank of America was ordered last year to return $501.8 million in deposits to Lehman, finding that the bank took deposits unrelated to its loans to Lehman during the financial crisis and must return them. The bank appealed the order in May. Bloomberg News

Two plead guilty to federal hazardous-waste charges

Two former owner-employees of Dove Environmental Management in Charlotte have pleaded guilty to federal charges of illegally storing and disposing of hazardous waste, the U.S. Attorney's office said.

Brian Smith of Wood River, Ill., entered a guilty plea Wednesday, the office said. His former wife, Kaara Doolin-Smith of Sanford, Fla., pleaded guilty to the same charge in June. Both are free on bond until sentencing and face maximum penalties of five years in prison and $50,000-a-day fines.

The two illegally stored more than 90 containers of hazardous waste in public rental storage units last year, court papers say. The unit owners found the containers when Dove missed rent payments. The Environmental Protection Agency removed the materials. Bruce Henderson

Solar plant opens on N.C. Christmas tree farm

A solar farm developed by a Cornelius firm opened Thursday on a Christmas tree farm in the mountains of Avery County.

Avery Solar covers six acres of the 38-acre tree farm in the county seat of Newland. Its 1-megawatt capacity is equal to the electricity about 120 homes use in a year. O2 Energies of Cornelius developed and owns the installation, which Chapel Hill-based Strata Solar built.

The solar farm will supply energy to Mountain Electric Cooperative, which serves western North Carolina and eastern Tennessee. Bruce Henderson

Rock Hill Galleria redo will allow J.C. Penney to expand

The 20-year-old Rock Hill Galleria mall is undertaking a renovation, affecting one major tenant, several smaller retailers and even Santa Claus.

Officials for the mall, off Interstate 77 about 12 miles south of the N.C. state line, said this week it has moved five stores to allow J.C. Penney to double its space.

Cypress Equities, operators of the mall, did not say how much it will spend on the renovations, which are expected to take a year. J.C. Penney and the mall will remain open during the renovations.

The mall has relocated five other stores. And Santa Claus, who traditionally greets children outside Penney's interior entrance, will have a new home. This year you'll find him near the food court. (Rock Hill) Herald