Indiana § 24-4.4-2-502 Debtor's right to rescind; accruing interest prohibited during rescission
period; disbursement of proceeds

Indiana Statutes

§ 24-4.4-2-502 — Debtor's right to rescind; accruing interest prohibited during rescission period; disbursement of proceeds

Indiana § 24-4.4-2-502

Art. 4.4FIRST LIEN MORTGAGE LENDING

Ch. 2Miscellaneous

This text of Indiana § 24-4.4-2-502 (Debtor's right to rescind; accruing interest prohibited during rescission period; disbursement of proceeds) is published on Counsel Stack Legal Research, covering Indiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Ind. Code § 24-4.4-2-502 (2026).

Text

(1)A violation by a creditor in a first lien mortgage transaction of Section 125 of the Consumer Credit Protection Act (15 U.S.C. 1635) (concerning a debtor's right to rescind a transaction) constitutes a violation of this article. A creditor may not accrue interest during the period when a first lien mortgage transaction may be rescinded under Section 125 of the Consumer Credit Protection Act (15 U.S.C. 1635).

(2)A creditor must make available for disbursement the proceeds of a transaction subject to subsection (1) on the later of:

(a)the date the creditor is reasonably satisfied that the debtor has not rescinded the transaction; or

(b)the first business day after the expiration of the rescission period under subsection (1).

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(1) A violation by a creditor in a first lien
mortgage transaction of Section 125 of the Consumer Credit Protection
Act (15 U.S.C. 1635) (concerning a debtor's right to rescind a
transaction) constitutes a violation of this article. A creditor may not
accrue interest during the period when a first lien mortgage transaction
may be rescinded under Section 125 of the Consumer Credit Protection
Act (15 U.S.C. 1635).
(2) A creditor must make available for disbursement the proceeds
of a transaction subject to subsection (1) on the later of:
(a) the date the creditor is reasonably satisfied that the debtor has
not rescinded the transaction; or
(b) the first business day after the expiration of the rescission
period under subsection (1).