On a rescindable transaction, when may the lender disburse loan funds?

a.Immediately at signing
b.Only after the three-business-day rescission period has expired without rescission
c.Within 24 hours of application
d.Only after 30 days

Giải thích

On a transaction subject to the right of rescission, the creditor generally may not disburse funds, and no work may be performed, until the three-business-day rescission period has expired and the lender is reasonably satisfied the consumer has not rescinded. Disbursing early would defeat the consumer's protected right to cancel.

Trích dẫn luật: Truth in Lending Act (Right of Rescission, Reg Z 1026.23)

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