15 U.S.C. §1635 — Right of rescission as to certain transactions
TILA statutory right-of-rescission section. Governs the consumer's right to rescind any consumer credit transaction in which a security interest is or will be retained in the consumer's principal dwelling (other than a residential mortgage transaction), the three-business-day window, the creditor's 20-day return-of-money obligation upon rescission, the 3-year outer limit on the right, and the rescission-rights-in- foreclosure provisions. Implemented in Regulation Z at 12 CFR §1026.23 (closed-end) and §1026.15 (open-end).
Verbatim regulatory text
Verbatim provisions from 15 U.S.C. §1635 — Right of rescission as to certain transactions — each quote is a verified substring of the regulator-published source snapshot, not retyped. Quoted for reference; this is not legal advice. The operational layer (P&P updates, prompts) lives in the regulation update kits.
15 U.S.C. §1635(a) — Disclose right to rescind; 3-business-day window
Except as otherwise provided in this section, in the case of any consumer credit transaction (including opening or increasing the credit limit for an open end credit plan) in which a security interest, including any such interest arising by operation of law, is or will be retained or acquired in any property which is used as the principal dwelling of the person to whom credit is extended, the obligor shall have the right to rescind the transaction until midnight of the third business day following the consummation of the transaction or the delivery of the information and rescission forms required under this section together with a statement containing the material disclosures required under this subchapter, whichever is later, by notifying the creditor , in accordance with regulations of the Bureau, of his intention to do so.
15 U.S.C. §1635(b) — 20-day return-of-money/property duty on rescission
Within 20 days after receipt of a notice of rescission, the creditor shall return to the obligor any money or property given as earnest money, downpayment, or otherwise, and shall take any action necessary or appropriate to reflect the termination of any security interest created under the transaction.
15 U.S.C. §1635(f) — Three-year outer limit on right to rescind
An obligor’s right of rescission shall expire three years after the date of consummation of the transaction or upon the sale of the property, whichever occurs first, notwithstanding the fact that the information and forms required under this section or any other disclosures required under this part have not been delivered to the obligor,