Answer: It sounds like you should be able to create one or two levels, which will help keep water from running down the bank. You can also create some nice stairs at intervals along the bank. This is quite a big job, though, just to warn you.
It's hard to describe how to construct these without illustrations, but I guess the best image I can conjure up is that you build 3-sided raised beds to create "steps" up the slope. You can use landscape timbers, stone, or any number of materials to make the terraces. You may have to adjust the grade of the slope a bit as you go to accomodate the frames. You may need to construct footers that reach below the frost line to keep it from heaving. Also, you'll want to include some sort of drainage behind the wall to avoid excess water pressure.
I searched our library here, as well as the internet, and didn't find any outstanding guides to help you with your project. Here are a few web sites that might help, and below I've listed a video I found on the Amazon.com online bookstore. I'm not familiar with it, however, so I can't vouch for it.
From Amazon.com -- a video about building retaining walls
I hope this helps get you started!
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