Mellon Bank Corp. said it signed a letter of intent to buy AFCO Credit Corp., the nation's largest provider of insurance premium financing, for $100 million in cash.

Mellon also agreed to pay AFCO's parent, the Continental Corp., up to $78 million more after five years, based on loan growth.

AFCO, based in New York, has $1.2 billion in assets and earned $23 million before taxes on $65 million in revenue last year.

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