Option given a borrower in a loan secured by real estate to cancel the loan contract after a three-day cooling-off period. Rescission delays the actual funding commitment for a home equity loan or other real estate secured loan for that three-day period. In open-end equity secured loans, the right of rescission is applied once, at the outset of the loan, under the current interpretation of the Truth in Lending Act. See also Regulation Z.
Right of Rescission
| Banking Dictionary: Right of Rescission |
| 5min Related Video: Right of Rescission |
Learn More
 | Voidable (finance term) |
| Truth in Lending Law (finance term) |
| Rescind (business term) |
Help us answer these
 | What is the right of rescission in New Jersey? |
| What does Utah's right of rescission pertain to? |
| Is there a right of Rescission for clothing purchase? |
Post a question - any question - to the WikiAnswers community:
Copyrights:
 |
 | Banking Dictionary. Dictionary of Banking Terms. Copyright © 2006 by Barron's Educational Series, Inc. All rights reserved. Read more |
Related answers
- Right of rescission in Nevada?
- Used car right of rescission?
- What does Ohio's right of rescission pertain to?
ADVERTISEMENT
Answer these
- Is there a right of rescission for vacation contracts?
- What is the right of rescission on cars in Missouri?
Mentioned in
- Voidable (finance term)
- Truth in Lending Law (finance term)
- Rescind (business term)
- Second Mortgage Lending (finance term)
- Regulation Z (in banking)
- Second Mortgage (in banking)
- Truth in Lending Act (in banking)
- Misrepresentation (legal term)
- Rescission (legal term)
- Parol evidence rule
- Uniform Debt-Management Services Act
- Mistake (contract law)
- Investors Compensation Scheme Ltd v West Bromwich Building Society
