BankAmerica Corp. said Monday that it has agreed to sell its consumer finance unit for $1.6 billion, the largest deal yet in the lucrative but risky subprime lending business.

The buyer-Commercial Credit Co., a unit of Travelers Group Inc.-said it is paying a $300 million premium over net tangible assets for Security Pacific Funding Corp., which makes home equity and personal loans to consumer with blemished credit records.

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