Section 24-4.5-5-204 - Debtor's right to rescind; accruing interest prohibited during rescission period; disbursement of proceeds Debtor's Right to Rescind Certain Transactions -
(1) A violation by a creditor of Section 125 of the Consumer Credit Protection Act (as defined in IC 24-4.5-1-302) concerning the debtor's right to rescind a transaction that is a consumer credit sale or a consumer loan constitutes a violation of IC 24-4.5. A creditor may not accrue interest during the period when a consumer loan may be rescinded under Section 125 of the Consumer Credit Protection Act (15 U.S.C. 1635).(2) A creditor must make available for disbursement the proceeds of a transaction subject to subsection (1) on the later of:(A) the date the creditor is reasonably satisfied that the consumer has not rescinded the transaction; or(B) the first business day after the expiration of the rescission period under subsection (1).Amended by P.L. 86-2018,SEC. 195, eff. 3/15/2018.Amended by P.L. 159-2017,SEC. 17, eff. 7/1/2017.(Formerly: Acts1971 , P.L. 366, SEC.6.) As amended by Acts1982 , P.L. 149, SEC.7; P.L. 122-1994, SEC.32; P.L. 23-2000, SEC.9.