# EDGAR Filing Document

**Accession Number:** 0000927971
**File Stem:** 0001214659-25-011492
**Filing Date:** 2025-8
**Character Count:** 59270
**Document Hash:** a929295a990b0e379257b8a255ce7b26
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001214659-25-011492.hdr.sgml**: 20250805

**ACCESSION NUMBER**: 0001214659-25-011492

**CONFORMED SUBMISSION TYPE**: 424B2

**PUBLIC DOCUMENT COUNT**: 8

**FILED AS OF DATE**: 20250805

**DATE AS OF CHANGE**: 20250805

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** BANK OF MONTREAL /CAN/
- **CENTRAL INDEX KEY:** 0000927971
- **STANDARD INDUSTRIAL CLASSIFICATION:** COMMERCIAL BANKS, NEC [6029]
- **ORGANIZATION NAME:** 02 Finance
- **EIN:** 000000000
- **STATE OF INCORPORATION:** A6
- **FISCAL YEAR END:** 1031

**FILING VALUES:**
- **FORM TYPE:** 424B2
- **SEC ACT:** 1933 Act
- **SEC FILE NUMBER:** 333-285508
- **FILM NUMBER:** 251183498

**BUSINESS ADDRESS:**
- **STREET 1:** 1 FIRST CANADIAN PLACE
- **CITY:** TORONTO
- **STATE:** A6
- **ZIP:** M5X 1A1
- **BUSINESS PHONE:** 000-000-0000

**MAIL ADDRESS:**
- **STREET 1:** 1 FIRST CANADIAN PLACE
- **CITY:** TORONTO
- **STATE:** A6
- **ZIP:** M5X 1A1

**The information in this preliminary term sheet is not complete and may be changed. This preliminary term sheet and the accompanying product supplement, prospectus supplement and prospectus are not an offer to sell these notes and we are not soliciting an offer to buy these notes in any jurisdiction where the offer or sale is not permitted.**

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| | |
|:---|:---|
| **Subject to Completion**<br> **Preliminary Term Sheet dated**<br> **August 5, 2025**  | **Filed Pursuant to Rule 424(b)(2)<br> Registration Statement No. 333-285508**<br> **(To Product Supplement No. EQUITY ARN-1 dated July 29, 2025,**<br> **Prospectus Supplement dated March 25, 2025** <br> **and Prospectus dated March 25, 2025**)<br>|

---

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| | | |
|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Units<br> $10 principal amount per unit<br> CUSIP No. | Pricing Date\*<br> Settlement Date\*<br> Maturity Date\* | August , 2025<br> September , 2025<br> October , 2026 |
| ![](bmologosm.jpg) | \*Subject to change based on the actual date the notes are priced for initial sale to the public (the "pricing date") | \*Subject to change based on the actual date the notes are priced for initial sale to the public (the "pricing date") |

---

**Accelerated Return Notes<sup>®</sup> Linked to the EURO STOXX 50<sup>®</sup> Index**

▪ Maturity of approximately 14 months

▪ 3-to-1 upside exposure to increases in the Index, subject to a capped return of [15.00% to 19.00%]

▪ 1-to-1 downside exposure to decreases in the Index, with up to 100% of your principal at risk

▪ All payments occur at maturity and are subject to the credit risk of Bank of Montreal

▪ No periodic interest payments

▪ In addition to the underwriting discount set forth below, the notes include a hedging-related charge of $0.05 per unit. See "Structuring
the Notes"

▪ Limited secondary market liquidity, with no exchange listing

▪ The
notes are the unsecured obligations of Bank of Montreal. The notes are not insured by the Federal Deposit Insurance Corporation, the Deposit
Insurance Fund, the Canada Deposit Insurance Corporation or any other governmental agency.

**The notes are being issued by Bank of Montreal ("BMO"). There are important differences between the notes and a conventional debt security, including different investment risks and certain additional costs. See "Risk Factors" beginning on page TS-6 of this term sheet and beginning on page PS-5 of product supplement EQUITY ARN-1.**

**The estimated initial value of the notes determined by us as of the pricing date, which we refer to as the initial estimated value, is expected to be within the range of $8.90 and $9.47 per unit and will be less than the public offering price listed below. However, as discussed in more detail in this term sheet, the actual value of the notes at any time will reflect many factors and cannot be predicted with accuracy.** See "Summary" on the following page, "Risk Factors" beginning on page TS-6 of this term sheet and "Structuring the Notes" below for additional information.

**The notes are not bail-inable notes and are not subject to conversion into our common shares or the common shares of any of our affiliates under subsection 39.2(2.3) of the Canada Deposit Insurance Corporation Act.**

**_________________________**

None of the Securities and Exchange Commission (the "SEC"), any state securities commission, or any other regulatory body has approved or disapproved of these notes or determined if this Note Prospectus (as defined below) is truthful or complete. Any representation to the contrary is a criminal offense.

**_________________________**

---

| | | |
|:---|:---|:---|
|  | <u>Per Unit</u> | <u>Total</u> |
| Public offering price<sup>(1)</sup> | $10.000 | $|
| Underwriting discount<sup>(1)</sup> | $0.175 | $|
| Proceeds, before expenses, to BMO | $9.825 | $|

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) For any purchase of 300,000 units or more in a single transaction by an individual investor or in combined
transactions with the investor's household in this offering, the public offering price and the underwriting discount will be $9.950
per unit and $0.125 per unit, respectively. See "Supplement to the Plan of Distribution" below.

**The notes:**

---

| | | |
|:---|:---|:---|
| **Are Not FDIC Insured** | **Are Not Bank Guaranteed** | **May Lose Value** |

---

**BofA Securities**

August , 2025

Accelerated Return Notes<sup>®</sup> <br> <u>Linked to the EURO STOXX 50<sup>®</sup> Index, due October , 2026</u>

Summary

The Accelerated Return Notes<sup>®</sup> Linked to the EURO STOXX 50<sup>®</sup> Index, due October , 2026 (the "notes") are our senior unsecured debt securities. The notes are not insured by the Canada Deposit Insurance Corporation or the Federal Deposit Insurance Corporation, or secured by collateral. The notes rank equally with all of our other unsecured senior debt from time to time outstanding. **Any payments due on the notes, including any repayment of principal, are subject to our credit risk.**

The notes provide you a leveraged return, subject to a cap, if the Ending Value of the Market Measure, which is the EURO STOXX 50<sup>®</sup> Index (the "Index"), is greater than the Starting Value. If the Ending Value is equal to the Starting Value, you will receive the principal amount of your notes. If the Ending Value is less than the Starting Value, you will lose all or a portion of the principal amount of your notes. Any payments on the notes will be calculated based on the $10 principal amount per unit and will depend on the performance of the Index, subject to our credit risk. See "Terms of the Notes" below.

Our initial estimated value of the notes equals the sum of the values of the following hypothetical components:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· a fixed-income debt component with the same tenor as the notes, valued using our internal funding rate
for structured notes; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· one or more derivative transactions relating to the economic terms of the notes.

The internal funding rate used in the determination of the initial estimated value generally represents a discount from the credit spreads for our conventional fixed-rate debt. The value of these derivative transactions is derived from our internal pricing models. These models are based on factors such as the traded market prices of comparable derivative instruments and on other inputs, which include volatility, dividend rates, interest rates and other factors. As a result, the initial estimated value of the notes is based on market conditions at the time it is calculated.

The economic terms of the notes (including the Capped Value) are based on our internal funding rate described above. Our internal funding rate is typically lower than the rate we would pay when we issue conventional fixed or floating rate debt securities. This difference in funding rate, as well as the underwriting discount and the hedging related charge described below, will reduce the economic terms of the notes to you and the initial estimated value of the notes on the pricing date. Due to these factors, the public offering price you pay to purchase the notes will be greater than the initial estimated value of the notes.

For more information about the initial estimated value and the structuring of the notes, see "Risk Factors" and "Structuring the Notes" below.

---

| | | |
|:---|:---|:---|
| Terms of the Notes | Terms of the Notes | Redemption Amount Determination |
| **Issuer:** | Bank of Montreal ("BMO") | On the maturity date, you will receive a cash payment per unit determined as follows: |
| **Principal Amount:** | $10.00 per unit | ![](w729251424b2_ts2chart.jpg) |
| **Term:** | Approximately 14 months | ![](w729251424b2_ts2chart.jpg) |
| **Market Measure:** | The EURO STOXX 50<sup>®</sup> Index (Bloomberg symbol: "SX5E"), a price return index | ![](w729251424b2_ts2chart.jpg) |
| **Starting Value:** | The closing level of the Market Measure on the pricing date | ![](w729251424b2_ts2chart.jpg) |
| **Ending Value:** | The average of the closing levels of the Market Measure on each calculation day occurring during the Maturity Valuation Period. The scheduled calculation days are subject to postponement in the event of Market Disruption Events, as described on page PS-24 of product supplement EQUITY ARN-1. | ![](w729251424b2_ts2chart.jpg) |
| **Participation Rate:** | 300% | ![](w729251424b2_ts2chart.jpg) |
| **Capped Value:** | [$11.50 to $11.90] per unit, which represents a return of [15.00% to 19.00%] over the principal amount. The actual Capped Value will be determined on the pricing date. | ![](w729251424b2_ts2chart.jpg) |
| **Maturity Valuation <br> Period:** | Five scheduled calculation days shortly before the maturity date. | ![](w729251424b2_ts2chart.jpg) |
| **Fees and Charges:** | The underwriting discount of $0.175 per unit listed on the cover page and the hedging related charge of $0.05 per unit described in "Structuring the Notes" below. | ![](w729251424b2_ts2chart.jpg) |
| **Joint Calculation <br> Agents:** | BMO Capital Markets Corp. ("BMOCM") and BofA Securities, Inc. ("BofAS"), acting jointly. | ![](w729251424b2_ts2chart.jpg) |

---

Accelerated Return Notes<sup>®</sup> TS-2

Accelerated Return Notes<sup>®</sup> <br> <u>Linked to the Russell 2000<sup>®</sup> Index, due October , 2026</u>

The terms and risks of the notes are contained in this term sheet and in the following:

▪ Product supplement EQUITY ARN-1 dated July 29, 2025:<br> [https://www.sec.gov/Archives/edgar/data/927971/000121465925011042/y725250424b2.htm](https://www.sec.gov/Archives/edgar/data/927971/000121465925011042/y725250424b2.htm)

▪ Prospectus Supplement and Prospectus dated March 25, 2025:<br> [https://www.sec.gov/Archives/edgar/data/927971/000119312525062081/d840917d424b5.htm](https://www.sec.gov/Archives/edgar/data/927971/000119312525062081/d840917d424b5.htm)

These documents (together, the "Note Prospectus") have been filed as part of a registration statement with the SEC, which may, without cost, be accessed on the SEC website as indicated above or obtained from Merrill Lynch, Pierce, Fenner & Smith Incorporated ("MLPF&S") or BofAS by calling toll-free at 1-800-294-1322. Before you invest, you should read the Note Prospectus, including this term sheet, for information about us and this offering. Any prior or contemporaneous oral statements and any other written materials you may have received are superseded by the Note Prospectus. Capitalized terms used but not defined in this term sheet have the meanings set forth in product supplement EQUITY ARN-1. When we refer to "we," "us" or "our" in this term sheet, we refer only to Bank of Montreal.

"Accelerated Return Notes<sup>®</sup>" and "ARNs<sup>®</sup>" are the registered service marks of Bank of America Corporation, the parent company of MLPF&S and BofAS.

Investor Considerations

**You may wish to consider an investment in the notes if:**

▪ You anticipate that the Index will increase moderately from the Starting Value to the Ending Value.

▪ You are willing to risk a loss of principal and return if the Index decreases from the Starting Value to the Ending Value.

▪ You accept that the return on the notes will be capped.

▪ You are willing to forgo the interest payments that are paid on conventional interest bearing debt securities.

▪ You are willing to forgo dividends or other benefits of owning the stocks included in the Index.

▪ You are willing to accept a limited market or no market for sales prior to maturity, and understand that the market prices for the
notes, if any, will be affected by various factors, including our actual and perceived creditworthiness, our internal funding rate and
fees and charges on the notes.

▪ You are willing to assume our credit risk, as issuer of the notes, for all payments under the notes, including the Redemption Amount.

**The notes may not be an appropriate investment for you if:**

▪ You believe that the Index will decrease from the Starting Value to the Ending Value or that it will not increase sufficiently over
the term of the notes to provide you with your desired return.

▪ You seek principal repayment or preservation of capital.

▪ You seek an uncapped return on your investment.

▪ You seek interest payments or other current income on your investment.

▪ You want to receive dividends or other distributions paid on the stocks included in the Index.

▪ You seek an investment for which there will be a liquid secondary market.

▪ You are unwilling or are unable to take market risk on the notes or to take our credit risk as issuer of the notes.

We urge you to consult your investment, legal, tax, accounting, and other advisors before you invest in the notes.

Accelerated Return Notes<sup>®</sup> TS-3

Accelerated Return Notes<sup>®</sup> <br> <u>Linked to the Russell 2000<sup>®</sup> Index, due October , 2026</u>

Hypothetical Payout Profile and Examples of Payments at Maturity

The graph below is based on **hypothetical** numbers and values.

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| | |
|:---|:---|
| <br>![](w729251424b2_ts4chart.jpg) | This graph reflects the returns on the notes, based on the Participation Rate of 300% and a hypothetical Capped Value of $11.70 per unit (the midpoint of the Capped Value range of [$11.50 to $11.90]). The green line reflects the returns on the notes, while the dotted gray line reflects the returns of a direct investment in the stocks included in the Index, excluding dividends.<br>This graph has been prepared for purposes of illustration only. |

---

The following table and examples are for purposes of illustration only. They are based on **hypothetical** values and show **hypothetical** returns on the notes. They illustrate the calculation of the Redemption Amount and total rate of return based on a hypothetical Starting Value of 100.00, the Participation Rate of 300%, a hypothetical Capped Value of $11.70 per unit and a range of hypothetical Ending Values. **The actual amount you receive and the resulting total rate of return will depend on the actual Starting Value, Ending Value and Capped Value, and whether you hold the notes to maturity.** The following examples do not take into account any tax consequences from investing in the notes.

For recent actual levels of the Index, see "The Index" section below. The Index is a price return index and as such the Ending Value will not include any income generated by dividends paid on the stocks included in the Index, which you would otherwise be entitled to receive if you invested in those stocks directly. In addition, all payments on the notes are subject to issuer credit risk.

---

| | | | |
|:---|:---|:---|:---|
| **Ending Value** | **Percentage Change from the<br> Starting Value to the Ending<br> Value** | **Redemption Amount per<br> Unit** | **Total Rate of Return on the<br> Notes** |
| 0.00 | -100.00% | $0.00 | -100.00% |
| 50.00 | -50.00% | $5.00 | -50.00% |
| 60.00 | -40.00% | $6.00 | -40.00% |
| 70.00 | -30.00% | $7.00 | -30.00% |
| 80.00 | -20.00% | $8.00 | -20.00% |
| 90.00 | -10.00% | $9.00 | -10.00% |
| 95.00 | -5.00% | $9.50 | -5.00% |
| 97.50 | -2.50% | $9.75 | -2.50% |
| 100.00<sup>(1)</sup> | 0.00% | $10.00 | 0.00% |
| 102.50 | 2.50% | $10.75 | 7.50% |
| 105.00 | 5.00% | $11.50 | 15.00% |
| 105.67 | 5.67% | $11.70<sup>(2)</sup> | 17.00% |
| 110.00 | 10.00% | $11.70 | 17.00% |
| 120.00 | 20.00% | $11.70 | 17.00% |
| 130.00 | 30.00% | $11.70 | 17.00% |
| 140.00 | 40.00% | $11.70 | 17.00% |
| 150.00 | 50.00% | $11.70 | 17.00% |
| 160.00 | 60.00% | $11.70 | 17.00% |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) The **hypothetical** Starting Value of 100.00 used in these examples has been chosen for illustrative purposes only, and does not
represent a likely actual Starting Value for the Market Measure.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) The Redemption Amount per unit cannot exceed the **hypothetical** Capped Value.

Accelerated Return Notes<sup>®</sup> TS-4

Accelerated Return Notes<sup>®</sup> <br> <u>Linked to the Russell 2000<sup>®</sup> Index, due October , 2026</u>

**Redemption Amount Calculation Examples**

**Example 1** 

The Ending Value is 50.00, or 50.00% of the Starting Value:

Starting Value: 100.00 <br> Ending Value: 50.00

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| | |
|:---|:---|
| ![](w729251424b2_ts5achart.jpg) | &nbsp;&nbsp;&nbsp;&nbsp;**= $5.00** Redemption Amount per unit |

---

**Example 2** 

The Ending Value is 102.50, or 102.50% of the Starting Value:

Starting Value: 100.00 <br> Ending Value: 102.50

---

| | |
|:---|:---|
| ![](w729251424b2_ts5bchart.jpg) | &nbsp;&nbsp;&nbsp;&nbsp;**= $10.75** Redemption Amount per unit |

---

**Example 3** 

The Ending Value is 130.00, or 130.00% of the Starting Value:

Starting Value: 100.00 <br> Ending Value: 130.00

---

| | |
|:---|:---|
| ![](w729251424b2_ts5cchart.jpg) | &nbsp;&nbsp;&nbsp;&nbsp;**= $19.00, however, because the Redemption Amount for the notes cannot exceed the Capped Value, the Redemption Amount will be $11.70 per unit** |

---

Accelerated Return Notes<sup>®</sup> TS-5

Accelerated Return Notes<sup>®</sup> <br> <u>Linked to the Russell 2000<sup>®</sup> Index, due October , 2026</u>

Risk Factors

*There are important differences between the notes and a conventional debt security. An investment in the notes involves significant risks, including those listed below. You should carefully review the more detailed explanation of risks relating to the notes in the "Risk Factors" sections beginning on page PS-5 of product supplement EQUITY ARN-1, page S-2 of the prospectus supplement, and page 9 of the prospectus identified above. We also urge you to consult your investment, legal, tax, accounting, and other advisors before you invest in the notes.* 

**<u>Structure-related Risks</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;▪ Depending on the performance of the Index as measured shortly before the maturity date, your investment may result in a loss; there
is no guaranteed return of principal.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;▪ The notes do not pay interest, and any return on the notes may be less than the yield you could earn by owning a conventional fixed
or floating rate debt security of comparable maturity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;▪ Any positive return on your investment is limited to the return represented by the Capped Value and may be less than a comparable
investment directly in the stocks included in the Index.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;▪ Payments on the notes are subject to our credit risk, and actual or perceived changes in our creditworthiness are expected to affect
the value of the notes. If we become insolvent or are unable to pay our obligations, you may lose your entire investment.

**<u>Valuation and Market-related Risks</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;▪ Our initial estimated value of the notes is only an estimate, and is based on a number of factors. The public offering price of the
notes may exceed our initial estimated value, because costs associated with offering, structuring and hedging the notes are included in
the public offering price, but are not included in the estimated value. These costs will include any underwriting discount and selling
concessions and the cost of hedging our obligations under the notes through one or more hedge counterparties (which may be one or more
of our affiliates or an agent or its affiliates). Such hedging cost includes our or our hedge counterparty's expected cost of providing
such hedge, as well as the profit we or our hedge counterparty expect to realize in consideration for assuming the risks inherent in providing
such hedge.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;▪ To determine the terms of the notes, we use an internal funding rate that represents a discount from the credit spreads for our conventional
fixed-rate debt. As a result, the terms of the notes are less favorable to you than if we had used a higher funding rate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;▪ Our initial estimated value of the notes is derived using our internal pricing models. This value is based on market conditions and
other relevant factors, which include volatility of the Index, dividend rates and interest rates. Different pricing models and assumptions,
including those used by the agent, its affiliates or other market participants, could provide values for the notes that are greater than
or less than our initial estimated value. In addition, market conditions and other relevant factors after the pricing date are expected
to change, possibly rapidly, and our assumptions may prove to be incorrect. After the pricing date, the value of the notes could change
dramatically due to changes in market conditions, our creditworthiness, and the other factors discussed in the next risk factor. These
changes are likely to impact the price, if any, at which we, BofAS or any of our respective affiliates would be willing to purchase the
notes from you in any secondary market transactions. Our initial estimated value does not represent a minimum price at which we, BofAS
or any of our respective affiliates or any other party would be willing to buy your notes in any secondary market at any time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;▪ A trading market is not expected to develop for the notes. None of us, MLPF&S, BofAS or any of our respective affiliates is obligated
to make a market for, or to repurchase, the notes. There is no assurance that any party will be willing to purchase your notes at any
price in any secondary market.

**<u>Conflict-related Risks</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;▪ Our business, hedging and trading activities, and those of MLPF&S, BofAS and our respective affiliates (including trading in shares
of companies included in the Index), and any hedging and trading activities we, MLPF&S, BofAS or our respective affiliates engage
in for our clients' accounts, may adversely affect the market value of and return on the notes and may create conflicts of interest
with you.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;▪ There may be potential conflicts of interest involving the calculation agents, one of which is our affiliate and one of which is BofAS.
We have the right to appoint and remove the calculation agents.

**<u>Market Measure-related Risks</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;▪ The Index sponsor may adjust the Index in a way that affects its level, and has no obligation to consider your interests.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;▪ You will have no rights of a holder of the securities included in the Index, and you will not be entitled to receive securities or
dividends or other distributions by the issuers of those securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;▪ While we, MLPF&S, BofAS or our respective affiliates may from time to time own securities of companies included in the Index,
we, MLPF&S, BofAS and our respective affiliates do not control any company included in the Index, and have not verified any disclosure
made by any company.

Accelerated Return Notes<sup>®</sup> TS-6

Accelerated Return Notes<sup>®</sup> <br> <u>Linked to the Russell 2000<sup>®</sup> Index, due October , 2026</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;▪ Your return on the notes may be affected by factors affecting the international securities markets, specifically changes in the countries
represented by the Index. In addition, you will not obtain the benefit of any increase in the value of the euro against the U.S.
dollar which you would have received if you had owned the securities included in the Index during the term of your notes, although the
level of the Index may be adversely affected by general exchange rate movements in the market.

**<u>Tax-related Risks</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;▪ The U.S. federal income tax consequences of an investment in the notes are unclear. There is no direct legal authority regarding the
proper U.S. federal income tax treatment of the notes and we do not plan to request a ruling from the Internal Revenue Service (the "IRS")
with respect to the notes. Consequently, significant aspects of the tax treatment of the notes are uncertain, and the IRS or a court might
not agree with our intended treatment of them, as described in "United States Federal Income Tax Considerations" below. If
the IRS were successful in asserting an alternative treatment of the notes, the tax consequences of the ownership and disposition of the
notes, including the timing and character of income recognized by U.S. investors, and the withholding tax consequences to non-U.S. investors,
might be materially and adversely affected. Moreover, future legislation, Treasury regulations or IRS guidance could adversely affect
the U.S. federal income tax treatment of the notes, possibly retroactively.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;▪ You should review carefully the sections of this term sheet and the accompanying product supplement entitled "United States
Federal Income Tax Considerations" and consult your tax advisor regarding the U.S. federal income tax consequences of an investment
in the notes, as well as tax consequences arising under the laws of any state, local or non-U.S. taxing jurisdiction.

Other Terms of the Notes

**Market Measure Business Day**

The following definition supersedes and replaces the definition of "Market Measure Business Day" set forth in product supplement EQUITY ARN-1.

A "Market Measure Business Day" means a day on which:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) the Eurex (or any successor) is open for trading; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) the Index or any successor thereto is calculated and published.

Accelerated Return Notes<sup>®</sup> TS-7

Accelerated Return Notes<sup>®</sup> <br> <u>Linked to the Russell 2000<sup>®</sup> Index, due October , 2026</u>

The Index

We obtained all information contained in this term sheet regarding the Index, including, without limitation, its make-up, method of calculation, and changes in its components, from publicly available information. That information reflects the policies of, and is subject to change by, STOXX Limited ("STOXX" or the "Index Sponsor"). STOXX is a wholly owned subsidiary of Deutsche Börse AG. The Index Sponsor has no obligation to continue to publish, and may discontinue publication of, the Index at any time. The consequences of the Index Sponsor discontinuing publication of the Index are discussed in the section entitled "Description of the ARNs—Discontinuance of an Index" in product supplement EQUITY ARN-1. Neither we nor any agent has independently verified the accuracy or completeness of any information with respect to the Index in connection with the offer and sale of the notes.

In addition, information about the Index may be obtained from other sources including, but not limited to, the Index Sponsor's website. We are not incorporating by reference into this term sheet the website or any material it includes. Neither we nor any agent makes any representation that such publicly available information regarding the Index is accurate or complete.

The Index is calculated and published by STOXX and the euro price return version of the Index is reported by Bloomberg L.P. under the ticker symbol "SX5E."

**General**

The Index is a free-float market capitalization weighted index composed of the largest stocks in terms of free-float market capitalization traded on the major exchanges of 11 Eurozone countries: Austria, Belgium, Finland, France, Germany, Ireland, Italy, Luxembourg, the Netherlands, Portugal and Spain. At any given time, some eligible countries may not be represented in the Index.

The Index is composed of all of the components of the STOXX<sup>®</sup> Europe 600 Index that are traded in euros and assigned to countries in the Eurozone.

The weighting cap factor limits the weight of each component stock within the Index to a maximum of 20% of the Index at the time of each review.

**Index Maintenance**

The composition of each of the Index is reviewed quarterly in March, June, September and December. The review cut-off date is the last trading day of the month preceding the review month.

The composition of the Index is reviewed annually in September. The review cut-off date is the last trading day of August. The composition of the Index is also reviewed monthly and components that rank 75 or below are replaced and non-component stocks that rank 25 or above are added.

In addition, changes to country classification and listing are effective as of the next quarterly review. At that time, the Index is adjusted accordingly to remain consistent with its country membership rules by deleting the company where necessary.

The Index is also reviewed on an ongoing basis. Corporate actions (including initial public offerings, mergers and takeovers, spin-offs, delistings, bankruptcy, and price and share adjustments) that affect the Index composition are immediately reviewed. Any changes are announced, implemented and effective in line with the type of corporate action and the magnitude of the effect.

To maintain the number of components constant, a removed company is replaced by the highest-ranked non-component on the relevant selection list. The selection list is updated on a monthly basis according to the review component selection process.

The free-float factors for each component stock used to calculate the Index are reviewed, calculated and implemented on a quarterly basis and are fixed until the next quarterly review.

**Index Calculation**

The Index is calculated with the "Laspeyres formula," which measures the aggregate price changes in the component stocks against a fixed base quantity weight. The formula for calculating the value of the Index can be expressed as follows:

Index = free-float market capitalization of the Index <br> divisor

The "free-float market capitalization of the Index" is equal to the sum of the products, for each component stock, of the price, number of shares, free-float factor, weighting cap factor and, if applicable, the exchange rate from the local currency into the index currency of the Index as of the time the Index is being calculated.

The free-float factor of each component stock is intended to reduce the number of shares to the actual amount available on the market. All fractions of the total number of shares that are larger than or equal to 5% and whose holding is of a long-term nature are excluded from the calculation of the Index, including: cross-ownership (stock owned either by the company itself, in the form of treasury shares, or owned by other companies); government ownership (stock owned by either governments or their agencies); private ownership (stock owned by either individuals or families); and restricted shares that cannot be traded during a certain period or have a foreign ownership restriction. Block ownership is not applied for holdings of custodian nominees, trustee companies, mutual funds, investment companies with short-term investment strategies, pension funds and similar entities.

Accelerated Return Notes<sup>®</sup> TS-8

Accelerated Return Notes<sup>®</sup> <br> <u>Linked to the Russell 2000<sup>®</sup> Index, due October , 2026</u>

The Index is also subject to a divisor, which is adjusted to maintain the continuity of the values of the Index despite changes due to corporate actions. The following is a summary of the adjustments to any component stock of the Index made for corporate actions and the effect of such adjustment on the divisor of the Index, where shareholders of the component stock will receive "B" number of shares for every "A" share held (where applicable).

---

| | |
|:---|:---|
| 𝜏 | withholding tax |
| Divt | dividend amount announced by company |
| pt-1 | closing price on the day before the ex-date |
| padj | new adjusted price |
| wft-1 | weighting factor on the day before the ex-date |
| wfadj | new adjusted weighing factor |
| st-1 | number of shares on the day before the ex-date |
| sadj | new adjusted number of shares |
| SP | subscription price |

---

---

| | |
|:---|:---|
| **Special Cash Dividend** | **Divisor** |
| Cash distributions that are outside the scope of the regular dividend policy or that the company defines as an extraordinary distribution.<br>padj = pt-1 - Divt × (1 – 𝜏\*)<br>\* If a withholding tax (𝜏) applies then 𝜏 > 0, else 𝜏 = 0.  | decreases |
| **Split and Reverse Split** | **Divisor** |
| padj = pt-1 × A / B<br>sadj = st-1 × B / A  | unchanged |
| **Rights Offering** |  |
| If the subscription price is not available or equal to or greater than the closing price on the day before the ex-date (out-of-the-money), then no adjustment is made.<br>If the subscription price is available as a price range and not as a fixed price, the price and share adjustment is performed only if both lower and upper range are in the money. The average value between lower and upper range will be used as a subscription price.  |  |
| ***Standard Rights Issue*** | **Divisor** |
| padj = (pt-1 × A + SP × B) / (A + B)<br>sadj = st-1 × (A + B) / A  | increases |
| ***Highly Dilutive Rights Issue*** | **Divisor** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; A rights offering is considered to be a Highly Dilutive Rights Issue ("**HDRI**") if the share ratio is larger than or equal to 200% (B/A ≥ 2).<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Scenario 1: If a HDRI is fully underwritten it will be implemented as a Standard Rights Issue.<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Scenario 2: if a HDRI is not fully underwritten and the rights are tradable on the ex-date on the same eligible stock exchange as the parent company:<br>o The rights will be included into the indices with a theoretical price on the ex-date with the same parameters as the parent company.<br>o The rights will be removed at the close of the day they start to trade based on its closing price.<br>o If the rights issue results into listing of new shares and satisfy certain criteria relating to free float factors and share adjustments under STOXX methodology, then the number of shares will be increased after the new shares have been listed. | <br>unchanged on ex-date<br>decreases after deletion of rights<br>increases on the day of the share increase  |

---

Accelerated Return Notes<sup>®</sup> TS-9

Accelerated Return Notes<sup>®</sup> <br> <u>Linked to the Russell 2000<sup>®</sup> Index, due October , 2026</u>

---

| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Scenario 3: If a HDRI is not fully underwritten and the rights are not tradable on the ex-date or not tradable on the ex-date on the same eligible stock exchange as the parent company:<br>o The rights will be included into the indices with a theoretical price on the ex-date with the same parameters as the parent company.<br>o The rights will be removed on the ex-date at the close, using a price of 0.0000001 in local currency.<br>o If the rights issue results into listing of new shares and satisfy certain criteria relating to free float factors and share adjustments under STOXX methodology, then the number of shares will be increased after the new shares have been listed.  | <br>unchanged on ex-date<br>unchanged<br>increases on the day of the share increase |
| **Ordinary Stock Dividend** | **Divisor** |
| padj = pt-1 × A / (A + B)<br>sadj = st-1 × (A + B) / A  | unchanged |
| **Stock Dividend From Treasury Stock (only if treated as a special cash dividend)** | **Divisor** |
| Stock dividends from treasury stocks will be adjusted as cash dividends.<br>padj = pt-1 - pt-1 × B / (A + B)  | decreases |
| **Stock Dividend From Redeemable Shares (only if treated as a special cash dividend)** | **Divisor** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock dividends from redeemable shares will be adjusted as cash dividends. In such a case, redeemable shares are considered as:<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· A separated share line with a fixed price.<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Ordinary shares that are self-tendered on the same ex-date.<br>padj = pt-1 - pt-1 × B / (A + B)  | decreases |
| **Stock Dividend of Another Company** | **Divisor** |
| padj = [(pt-1 × A) – [(1 – 𝜏\*) × price of the other company × B]] / A<br>\* If a withholding tax (𝜏) applies then 𝜏 > 0, else 𝜏 = 0.  | decreases |
| **Return of Capital and Share Consolidation** | **Divisor** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The event will be applied as a combination of cash/special dividend together with a reverse split.<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· If the return of capital is considered as regular cash dividend, then the treatment under "Split and Reverse Split" above applies.<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· If the return of capital is considered as special cash dividend, then the treatment under "Special Cash Dividend" and "Split and Reverse Split" above apply accordingly.<br>padj = [pt-1 - capital return announced by company × (1 – 𝜏\*)] × A / B<br>\* If a withholding tax (𝜏) applies then 𝜏 > 0, else 𝜏 = 0.<br>sadj = st-1 × B / A  | <br>decreases<br>decreases |
| **Repurchase of Shares/Self-Tender** | **Divisor** |
| padj = [(pt-1 × st-1) – (tender price × number of tendered shares)] / sadj<br>sadj = st-1 - number of tendered shares  | decreases |
| **Spin-off** | **Divisor** |
| The adjusted price (padj), the number of shares before the ex-date (st-1) and the weighting factor on the day before the ex-date (wft-1) refer to the parent company.<br>padj = (pt-1 × A – price of spun-off shares × B) / A<br>New number of shares for the spun-off company = st-1 × B  | <br> unchanged on ex-date |

---

Accelerated Return Notes<sup>®</sup> TS-10

Accelerated Return Notes<sup>®</sup> <br> <u>Linked to the Russell 2000<sup>®</sup> Index, due October , 2026</u>

---

| | |
|:---|:---|
| **Combination of Stock Distribution (Dividend or Split) and Rights Offering** | **Divisor** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; For the below corporate actions, the following additional assumptions apply:<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Shareholders receive 'B' new shares from the distribution and 'C' new shares from the rights offering for every 'A' share held.<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· If 'A' is not equal to one, all the following 'new number of shares' formulas need to be divided by 'A':<br>o If rights are applicable after stock distribution (one action applicable to another)<br>padj = [pt-1 × A + SP × C × (1 + B / A)] / [(A + B) × (1 + C / A)]<br>sadj = st-1 × [(A + B) × (1 + C / A)] / A<br>o If stock distribution is applicable after rights (one action applicable to another)<br>padj = (pt-1 × A + SP × C) / [(A + C) × (1 + B / A)]<br>sadj = st-1 × (A + C) × (1 + B / A)<br>o Stock distribution and rights (neither action is applicable to the other)<br>padj = (pt-1 × A + SP × C) / (A + B + C)<br>sadj = st-1 × (A + B + C) / A<br>| <br>increases<br>increases<br>increases<br>|
| **Addition/Deletion of A Company** |  |
| No price adjustments are made. The change in market capitalization determines the divisor adjustment. If the change in market capitalization between added and deleted companies of an index increases (decreases), then the divisor increases (decreases). If the change is null, then the divisor remains unchanged. |  |
| **Free Float and Shares Changes** |  |
| No price adjustments are made. The change in market capitalization determines the divisor adjustment. If the change in market capitalization of an index increases (decreases), then the divisor increases (decreases). If the change is null, then the divisor remains unchanged. |  |

---

***The following graph shows the daily historical performance of the Index in the period from January 1, 2015 through July 31, 2025. We obtained this historical data from Bloomberg Finance L.P. We have not independently verified the accuracy or completeness of the information obtained from Bloomberg Finance L.P. On July 31, 2025, the closing level of the Index was 5,319.92.***

**Historical Performance of the Index**

![](w729251424b2_ts11chart.jpg)

***This historical data on the Index is not necessarily indicative of the future performance of the Index or what the value of the notes may be. Any historical upward or downward trend in the level of the Index during any period set forth above is not an indication that the level of the Index is more or less likely to increase or decrease at any time over the term of the notes.***

Before investing in the notes, you should consult publicly available sources for the levels of the Index.

Accelerated Return Notes<sup>®</sup> TS-11

Accelerated Return Notes<sup>®</sup> <br> <u>Linked to the Russell 2000<sup>®</sup> Index, due October , 2026</u>

**License Agreement**

We and STOXX have entered into a non-exclusive license agreement providing for the license to us, and certain of our affiliates, in exchange for a fee, of the right to use indices owned and published by STOXX in connection with certain securities, including the notes. The license agreement provides or is expected to provide that the following language must be stated in this term sheet.

STOXX has no relationship to us, other than the licensing of the Index and the related trademarks for use in connection with the notes. STOXX does not:

&nbsp;&nbsp;&nbsp;&nbsp;· sponsor, endorse, sell, or promote the notes;

&nbsp;&nbsp;&nbsp;&nbsp;· recommend that any person invest in the notes offered hereby or any other securities;

&nbsp;&nbsp;&nbsp;&nbsp;· have any responsibility or liability for or make any decisions about the timing, amount, or pricing of the notes;

&nbsp;&nbsp;&nbsp;&nbsp;· have any responsibility or liability for the administration, management, or marketing of the notes; or

&nbsp;&nbsp;&nbsp;&nbsp;· consider the needs of the notes or the holders of the notes in determining, composing, or calculating the Index, or have any obligation
to do so.

STOXX will not have any liability in connection with the notes. Specifically:

&nbsp;&nbsp;&nbsp;&nbsp;· STOXX does not make any warranty, express or implied, and disclaims any and all warranty concerning:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o the results to be obtained by the notes, the holders of the notes or any other person in connection with the use of the Index and
the data included in the STOXX Index;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o the accuracy or completeness of the Index and its data;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o the merchantability and the fitness for a particular purpose or use of the Index and its data;

&nbsp;&nbsp;&nbsp;&nbsp;· STOXX will have no liability for any errors, omissions, or interruptions in the Index or its data; and

&nbsp;&nbsp;&nbsp;&nbsp;· Under no circumstances will STOXX be liable for any lost profits or indirect, punitive, special, or consequential damages or losses,
even if STOXX knows that they might occur.

The licensing agreement between us and STOXX is solely for its benefit and our benefit, and not for the benefit of the holders of the notes or any other third parties.

Accelerated Return Notes<sup>®</sup> TS-12

Accelerated Return Notes<sup>®</sup> <br> <u>Linked to the Russell 2000<sup>®</sup> Index, due October , 2026</u>

Supplement to the Plan of Distribution

Under our distribution agreement with BofAS, BofAS will purchase the notes from us as principal at the public offering price indicated on the cover of this term sheet, less the indicated underwriting discount.

BofAS has informed us of the information in the following paragraph. MLPF&S will purchase the notes from BofAS for resale, and will receive a selling concession in connection with the sale of the notes in an amount up to the full amount of underwriting discount set forth on the cover of this term sheet.

We will pay a fee to LFT Securities, LLC for providing certain electronic platform services with respect to this offering, which reduces the economic terms of the notes to you. An affiliate of BofAS has an ownership interest in LFT Securities, LLC.

We may deliver the notes against payment therefor in New York, New York on a date that is greater than one business day following the pricing date. Under Rule 15c6-1 of the Securities Exchange Act of 1934, trades in the secondary market generally are required to settle in one business day, unless the parties to any such trade expressly agree otherwise. Accordingly, if the initial settlement of the notes occurs more than one business days from the pricing date, purchasers who wish to trade the notes more than one business day prior to the original issue date will be required to specify alternative settlement arrangements to prevent a failed settlement.

The notes will not be listed on any securities exchange. In the original offering of the notes, the notes will be sold in minimum investment amounts of 100 units. If you place an order to purchase the notes, you are consenting to MLPF&S and/or one of its affiliates acting as a principal in effecting the transaction for your account.

BofAS has advised us that MLPF&S and BofAS may repurchase and resell the notes, with repurchases and resales being made at prices related to then-prevailing market prices or at negotiated prices determined by reference to their pricing models at their discretion, and these prices will include MLPF&S's and BofAS's trading commissions and mark-ups or mark-downs. MLPF&S and BofAS may act as principal or agent in these market-making transactions; however, neither is obligated to engage in any such transactions. BofAS has advised us that at MLPF&S's and BofAS's discretion, for a short, undetermined initial period after the issuance of the notes, MLPF&S and BofAS may offer to buy the notes in the secondary market at a price that may exceed the initial estimated value of the notes. Any price offered by MLPF&S or BofAS for the notes is expected to be based on then-prevailing market conditions and other considerations, including the performance of the Index and the remaining term of the notes. However, none of us, MLPF&S, BofAS or any of our respective affiliates is obligated to purchase your notes at any price or at any time, and we cannot assure you that we, MLPF&S, BofAS or any of our respective affiliates will purchase your notes at a price that equals or exceeds the initial estimated value of the notes.

BofAS has informed us that, as of the date of this term sheet, it expects that if you hold your notes in a BofAS account, the value of the notes shown on your account statement will be based on BofAS's estimate of the value of the notes if BofAS or another of its affiliates were to make a market in the notes, which it is not obligated to do. That estimate will be based upon the price that BofAS may pay for the notes in light of then-prevailing market conditions and other considerations, as mentioned above, and will include transaction costs. At certain times, this price may be higher than or lower than the initial estimated value of the notes.

The distribution of the Note Prospectus in connection with these offers or sales will be solely for the purpose of providing investors with the description of the terms of the notes that was made available to investors in connection with their initial offering. Secondary market investors should not, and will not be authorized to, rely on the Note Prospectus for information regarding BMO or for any purpose other than that described in the immediately preceding sentence.

An investor's household, as referenced on the cover of this term sheet, will generally include accounts held by any of the following, as determined by MLPF&S in its discretion and acting in good faith based upon information then available to MLPF&S:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· the investor's spouse (including a domestic partner), siblings, parents, grandparents, spouse's parents, children and
grandchildren, but excluding accounts held by aunts, uncles, cousins, nieces, nephews or any other family relationship not directly above
or below the individual investor;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· a family investment vehicle, including foundations, limited partnerships and personal holding companies, but only if the beneficial
owners of the vehicle consist solely of the investor or members of the investor's household as described above; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· a trust where the grantors and/or beneficiaries of the trust consist solely of the investor or members of the investor's household
as described above; provided that, purchases of the notes by a trust generally cannot be aggregated together with any purchases made by
a trustee's personal account.

Purchases in retirement accounts will not be considered part of the same household as an individual investor's personal or other non-retirement account, except for individual retirement accounts ("IRAs"), simplified employee pension plans ("SEPs"), savings incentive match plan for employees ("SIMPLEs"), and single-participant or owners only accounts (i.e., retirement accounts held by self-employed individuals, business owners or partners with no employees other than their spouses).

Please contact your Merrill financial advisor if you have any questions about the application of these provisions to your specific circumstances or think you are eligible.

Accelerated Return Notes<sup>®</sup> TS-13

Accelerated Return Notes<sup>®</sup> <br> <u>Linked to the Russell 2000<sup>®</sup> Index, due October , 2026</u>

Structuring the Notes

The notes are our debt securities, the return on which is linked to the performance of the Index. As is the case for all of our debt securities, including our market-linked notes, the economic terms of the notes reflect our actual or perceived creditworthiness at the time of pricing. In addition, because market-linked notes result in increased operational, funding and liability management costs to us, we typically borrow the funds under these notes at a rate that is more favorable to us than the rate which we refer to as our internal funding rate, which is the rate that we might pay for a conventional fixed or floating rate debt security. This generally relatively lower internal funding rate, which is reflected in the economic terms of the notes, along with costs associated with offering, structuring and hedging the notes, results in the initial estimated value of the notes on the pricing date being less than the public offering price.

At maturity, we are required to pay the Redemption Amount to holders of the notes, which will be calculated based on the $10 per unit principal amount and will depend on the performance of the Index. In order to meet these payment obligations, at the time we issue the notes, we expect to enter into certain hedging arrangements (which may include call options, put options or other derivatives) with BofAS or one of its affiliates. The terms of these hedging arrangements are determined by seeking bids from market participants, which may include MLPF&S, BofAS and/or one of their or our respective affiliates, and take into account a number of factors, including our creditworthiness, interest rate movements, the volatility of the Index, the tenor of the notes and the tenor of the hedging arrangements. The economic terms of the notes and their initial estimated value depend in part on the terms of these hedging arrangements.

BofAS has advised us that the hedging arrangements will include a hedging related charge of approximately $0.05 per unit, reflecting an estimated profit to be credited to BofAS from these transactions. Since hedging entails risk and may be influenced by unpredictable market forces, additional profits and losses from these hedging arrangements may be realized by our affiliates, MLPF&S, BofAS or any other hedge providers. Any profit in connection with such hedging activity will be in addition to any other compensation that the agent, and their or our respective affiliates receive for the sale of notes, which creates an additional incentive to sell the notes to you.

For further information, see "Risk Factors—Valuation- and Market-related Risks" beginning on page PS-6 and "Use of Proceeds and Hedging" on page PS-20 of product supplement EQUITY ARN-1.

Accelerated Return Notes<sup>®</sup> TS-14

Accelerated Return Notes<sup>®</sup> <br> <u>Linked to the Russell 2000<sup>®</sup> Index, due October , 2026</u>

Summary of Canadian Federal Income Tax Consequences

For a discussion of the material Canadian federal income tax consequences relating to an investment in the notes, please see the section entitled "Canadian Federal Income Tax Summary" in the product supplement EQUITY ARN-1.

United States Federal Income Tax Considerations

Although there is uncertainty regarding the U.S. federal income tax consequences of an investment in the notes due to the lack of governing authority, in the opinion of our counsel Davis Polk & Wardwell LLP, under current law, and based on current market conditions, it is reasonable to treat a note as a single financial contract that is an "open transaction" for U.S. federal income tax purposes. However, because our counsel's opinion is based in part on market conditions as of the date of this document, it is subject to confirmation in the final pricing supplement. Assuming this treatment of the notes is respected, the tax consequences are as outlined in the discussion under "United States Federal Income Tax Considerations—Tax Consequences to U.S. Holders—ARNs Treated as Open Transactions" in the accompanying product supplement.

We do not plan to request a ruling from the Internal Revenue Service (the "IRS") regarding the treatment of the notes. If the IRS were successful in asserting an alternative treatment of the notes, the tax consequences of the ownership and disposition of the notes, including the timing and character of income recognized by U.S. investors, and the withholding tax consequences to non-U.S. investors, might be materially and adversely affected. For example, under one alternative characterization the notes may be treated as contingent payment debt instruments, which would require U.S. investors to accrue income periodically based on a "comparable yield" and generally would require non-U.S. investors to certify their non-U.S. status on an IRS Form W-8 to avoid a 30% (or a lower treaty rate) U.S. withholding tax. In addition, the U.S. Treasury Department and the IRS have requested comments on various issues regarding the U.S. federal income tax treatment of "prepaid forward contracts" and similar financial instruments and have indicated that such transactions may be the subject of future regulations or other guidance. Furthermore, members of Congress have proposed legislative changes to the tax treatment of derivative contracts. Any legislation, Treasury regulations or other guidance promulgated after consideration of these issues could materially and adversely affect the tax consequences of an investment in the notes, possibly with retroactive effect.

As discussed in the accompanying product supplement, Section 871(m) of the Code and the Treasury regulations thereunder ("Section 871(m)") generally impose a 30% (or lower treaty rate) withholding tax on "dividend equivalents" paid or deemed paid to non-U.S. investors with respect to certain financial instruments linked to equities that could pay U.S.-source dividends for U.S. federal income tax purposes ("underlying securities"), as defined under the applicable Treasury regulations, or indices that include underlying securities. Section 871(m) generally applies to financial instruments that substantially replicate the economic performance of one or more underlying securities, as determined based on tests set forth in the applicable Treasury regulations. Pursuant to an IRS notice, Section 871(m) will not apply to notes issued before January 1, 2027 that do not have a delta of one with respect to any underlying security. Based on the terms of the notes and current market conditions, we expect that the notes will not have a delta of one with respect to any underlying security on the pricing date. However, we will provide an updated determination in the final pricing supplement. Our determination is not binding on the IRS, and the IRS may disagree with this determination. Section 871(m) is complex and its application may depend on a non-U.S. investor's particular circumstances, including whether the non-U.S. investor enters into other transactions with respect to an underlying security. If withholding is required, we will not be required to pay any additional amounts with respect to the amounts so withheld. Non-U.S. investors should consult their tax advisors regarding the potential application of Section 871(m) to the notes.

Both U.S. and non-U.S. investors considering an investment in the notes should read the discussion under "United States Federal Income Tax Considerations" in the accompanying product supplement and consult their tax advisors regarding all aspects of the U.S. federal income and estate tax consequences of an investment in the notes, including possible alternative treatments, and any tax consequences arising under the laws of any state, local or non-U.S. taxing jurisdiction.

Accelerated Return Notes<sup>®</sup> TS-15