IC 37-1-3-22: Debtor's right to rescind; accruing interest prohibited during rescission period; disbursement of proceeds

Sec. 22. (a) 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 A creditor may not accrue interest during the period when a first lien mortgage transaction may be rescinded under Section 125 of the Consumer Credit Protection Act (15 U.S.C. 1635).

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

(1) the date the creditor is reasonably satisfied that the debtor has not rescinded the transaction; or

(2) the first business day after the expiration of the rescission period under subsection (a).