15 USC 1635 - Right of rescission as to certain transactions

U.S Code last checked for updates: Nov 22, 2024

§ 1635.

Right of rescission as to certain transactions

(a)

Disclosure of obligor’s right to rescind

(b)

Return of money or property following rescission

(c)

Rebuttable presumption of delivery of required disclosures

(d)

Modification and waiver of rights

(e)

Exempted transactions; reapplication of provisions

This section does not apply to—

(1)

a residential mortgage transaction as defined in section 1602(w) 1

 See References in Text note below.

of this title;

(2)

a transaction which constitutes a refinancing or consolidation (with no new advances) of the principal balance then due and any accrued and unpaid finance charges of an existing extension of credit by the same creditor secured by an interest in the same property;

(3)

a transaction in which an agency of a State is the creditor; or

(4)

advances under a preexisting open end credit plan if a security interest has already been retained or acquired and such advances are in accordance with a previously established credit limit for such plan.

(f)

Time limit for exercise of right

(g)

Additional relief

(h)

Limitation on rescission

(i)

Rescission rights in foreclosure

(1)

In general

Notwithstanding section 1649 of this title, and subject to the time period provided in subsection (f), in addition to any other right of rescission available under this section for a transaction, after the initiation of any judicial or nonjudicial foreclosure process on the primary dwelling of an obligor securing an extension of credit, the obligor shall have a right to rescind the transaction equivalent to other rescission rights provided by this section, if—

(A)

a mortgage broker fee is not included in the finance charge in accordance with the laws and regulations in effect at the time the consumer credit transaction was consummated; or

(B)

the form of notice of rescission for the transaction is not the appropriate form of written notice published and adopted by the Bureau or a comparable written notice, and otherwise complied with all the requirements of this section regarding notice.

(2)

Tolerance for disclosures

(3)

Right of recoupment under State law

(4)

Applicability

(Pub. L. 90–321, title I, § 125, May 29, 1968, 82 Stat. 153; Pub. L. 93–495, title IV, §§ 404, 405, 412, Oct. 28, 1974, 88 Stat. 1517, 1519; Pub. L. 96–221, title VI, § 612(a)(1), (3)–(6), Mar. 31, 1980, 94 Stat. 175, 176; Pub. L. 98–479, title II, § 205, Oct. 17, 1984, 98 Stat. 2234; Pub. L. 104–29, §§ 5, 8, Sept. 30, 1995, 109 Stat. 274, 275; Pub. L. 111–203, title X, § 1100A(2), July 21, 2010, 124 Stat. 2107.)

cite as: 15 USC 1635