formatting within a readonly textarea

I would like to create a scrolling text box that lists “terms and conditions” that should be read before checking off that they were read.

I’m using:

<textarea cols=”65″ rows=”10″ readonly=”yes”>

However I can’t do any formatting in the box. In fact, it displays like this:

TERMS AND CONDITIONS
These are the terms and conditions</p>

Any suggestions on how I can do this with limited formatting (bold, underline, italics)?

Thanks,
michael