IC 37-2-6-11: Debtor's right to rescind; accruing interest prohibited during rescission period; disbursement of proceeds

Sec. 11. (a) A violation by a creditor of Section 125 of the Consumer Credit Protection Act concerning the debtor's right to rescind a transaction that is a consumer credit sale or a consumer loan constitutes a violation of this article. A creditor may not accrue interest during the period when a consumer loan may be rescinded under Section 125 of the Consumer Credit Protection Act (15 U.S.C. 1635).

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(1) the date the creditor is reasonably satisfied that the consumer has not rescinded the transaction; or

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