{"data":{"id":"us-ok/okla.-stat.-tit.-14a-14a-5-204","jurisdiction":"us-ok","citation":"Okla. Stat. tit. 14A, § 14A-5-204","heading":"Right to rescind certain transactions","body":"(1) Except as otherwise provided in this section, in the case\n\nof a consumer credit sale or consumer loan, including opening or\n\nincreasing the credit limit for an open-end credit plan, with\n\nrespect to which a security interest, including any such interest\n\narising by operation of law, is or will be retained or acquired in\n\nany real or personal property which is used as the principal\n\ndwelling of the person to whom credit is extended, each person in\n\nwhose principal dwelling a security interest is or will be retained\n\nor acquired, if that person's ownership interest in the dwelling is\n\nor will be subject to the security interest, shall have the right to\n\nrescind the transaction until midnight of the third business day\n\nfollowing the consummation of the transaction or the delivery of the\n\ninformation and rescission forms required under this section\n\ntogether with a statement containing the material disclosures as\n\ndefined in subsection (7) of this section, whichever is later, by\n\nnotifying the creditor, in accordance with rules of the\n\nAdministrator, of the person’s intention to do so. The creditor\n\nshall clearly and conspicuously disclose, in accordance with rules\n\nof the Administrator, in a transaction subject to this section the\n\nrights of the person having the right of rescission under this\n\nsection. The creditor shall also provide, in accordance with rules\n\nof the Administrator, appropriate forms and an adequate opportunity\n\nto a person having the right of rescission to exercise the right to\n\nrescind any transaction subject to this section. If the required\n\nnotice and material disclosures are not delivered, the right to\n\nrescind shall expire no later than three (3) years after the date of\n\nconsummation of the transaction giving rise to the right of\n\nrescission, or upon sale of the property, whichever occurs first;\n\nexcept that if the Administrator or any other appropriate agency\n\ninstitutes a proceeding to enforce the provisions of this section\n\nwithin three (3) years after the date of consummation of the\n\ntransaction and finds a violation of this section and the right to\n\nrescind is based in whole or in part on any matter involved in such\n\nproceeding, then the right of rescission shall expire three (3)\n\nyears after the date of consummation of the transaction or upon the\n\nearlier sale of the property, or upon the expiration of one (1) year\n\nfollowing the conclusion of the proceeding, or any judicial review\n\nor period for judicial review thereof, whichever is later.\n\n(2) When the right of rescission is exercised under subsection\n\n(1) of this section, the debtor or person exercising the right of\n\nrescission is not liable for any credit service charge, loan finance\n\ncharge or other charge, and any security interest given, including\n\nany such interest arising by operation of law, becomes void upon the\n\nrescission. Within twenty (20) days after receipt of a notice of\n\nrescission, the creditor shall return any money or property given as\n\nearnest money, down payment or otherwise, and shall take any action\n\nnecessary or appropriate to reflect the termination of any security\n\ninterest created under the transaction. If the creditor has\n\ndelivered any property to the person exercising the right of\n\nrescission, such person may retain possession of it. Upon the\n\nperformance of the creditor's obligations under this section, the\n\nperson exercising the right of rescission shall tender to the\n\ncreditor all property delivered by the creditor in the consumer\n\ncredit transaction, except that if return of the property in kind\n\nwould be impractical or inequitable, tender of its reasonable value\n\nshall be made. Tender shall be made at the location of the property\n\nor at the principal dwelling of the person exercising the right of\n\nrescission, at the option of the person. If the creditor does not\n\ntake possession of the property within twenty (20) days after tender\nransaction, except that if return of the property in kind\n\nwould be impractical or inequitable, tender of its reasonable value\n\nshall be made. Tender shall be made at the location of the property\n\nor at the principal dwelling of the person exercising the right of\n\nrescission, at the option of the person. If the creditor does not\n\ntake possession of the property within twenty (20) days after tender\n\nby the person exercising the right of rescission, such person may\n\nkeep it without further obligation. The procedures prescribed by\n\nthis subsection shall apply except when otherwise ordered by a\n\ncourt.\n\n(3) Notwithstanding any rule of evidence, written\n\nacknowledgment of receipt of any disclosure required under this\n\ntitle by a person to whom information, forms, and a statement is\n\nrequired to be given pursuant to this section does no more than\n\ncreate a rebuttable presumption of delivery thereof.\n\n(4) The person entitled to exercise the right of rescission may\n\nmodify or waive the right to rescind if that person determines that\n\nthe extension of credit is necessary in order to meet a bona fide\n\npersonal financial emergency. To modify or waive the right, the\n\nperson shall give the creditor a dated written statement that\n\ndescribes the emergency, specifically modifies or waives the right\n\nto rescind, and bears the signature of all of the persons entitled\n\nto rescind. Printed forms for this purpose are prohibited.\n\n(5) This section does not apply to the creation or retention of\n\na consensual lien against a principal dwelling to finance the\n\nacquisition or initial construction of that dwelling; a transaction\n\nwhich constitutes a refinancing or consolidation (with no new\n\nadvances) of the principal balance then due and any accrued and\n\nunpaid finance charges of an existing extension of credit by the\n\nsame creditor secured by an interest in the same property; a\n\ntransaction in which an agency of a state is the creditor; or\n\nadvances under a preexisting open-end credit plan if a security\n\ninterest has already been retained or acquired and such advances are\n\nin accordance with a previously established credit limit for such\n\nplan.\n\n(6) In any action in which it is determined that a creditor has\n\nviolated this section, in addition to rescission the court may award\n\nrelief under Section 5-203 of this title for violations of this\n\ntitle not relating to the right to rescind.\n\n(7) The term \"material disclosures\" means the disclosure, as\n\nrequired by this title, of the annual percentage rate, the method of\n\ndetermining the finance charge and the balance upon which a finance\n\ncharge will be imposed, the amount of the finance charge, the amount\n\nto be financed, the total of payments, the number and amount of\n\npayments, and the due dates or periods of payments scheduled to\n\nrepay the indebtedness.\n\n(8) An obligor shall have no rescission rights arising solely\n\nfrom the form of written notice used by the creditor to inform the\n\nobligor of the rights of the obligor under this section, if the\n\ncreditor provided the obligor the appropriate form of written notice\n\npublished and adopted by the Administrator, or a comparable written\n\nnotice of the rights of the obligor, that was properly completed by\n\nthe creditor, and otherwise complied with all other requirements of\n\nthis section regarding notice.\n\n(9) (a) Notwithstanding the provisions of Section 21 of this\n\nact, and subject to the time period provided in\n\nsubsection (1) of this section, in addition to any\n\nother right of rescission available under this section\n\nfor a transaction, after the initiation of any\n\njudicial or nonjudicial foreclosure process on the\n\nprimary dwelling of an obligor securing an extension\n\nof credit, the obligor shall have a right to rescind\n\nthe transaction equivalent to other rescission rights\n\nprovided by this section, if:\nsubsection (1) of this section, in addition to any\n\nother right of rescission available under this section\n\nfor a transaction, after the initiation of any\n\njudicial or nonjudicial foreclosure process on the\n\nprimary dwelling of an obligor securing an extension\n\nof credit, the obligor shall have a right to rescind\n\nthe transaction equivalent to other rescission rights\n\nprovided by this section, if:\n\n(i) a mortgage broker fee is not included in the\n\nfinance charge in accordance with the laws and\n\nregulations in effect at the time the consumer\n\ncredit transaction was consummated; or\n\n(ii) the form of notice of rescission for the\n\ntransaction is not the appropriate form of\n\nwritten notice published and adopted by the\n\nAdministrator or a comparable written notice, and\n\notherwise complied with all the requirements of\n\nthis section regarding notice.\n\n(b) Notwithstanding the provisions of subsection (6) of\n\nSection 3-304 of this title, and subject to the time\n\nperiod provided in subsection (1) of this section, for\n\nthe purposes of exercising any rescission rights after\n\nthe initiation of any judicial or nonjudicial\n\nforeclosure process on the principal dwelling of the\n\nobligor securing an extension of credit, the\n\ndisclosure of the finance charge and other disclosures\n\naffected by any finance charge shall be treated as\n\nbeing accurate for purposes of this section if the\n\namount disclosed as the finance charge does not vary\n\nfrom the actual finance charge by more than Thirty-\n\nfive Dollars ($35.00) or is greater than the amount\n\nrequired to be disclosed under this title.\n\n(c) Nothing in this subsection affects a consumer's right\n\nof rescission in recoupment under law.\n\n(d) This subsection shall apply to all consumer credit\n\ntransactions in existence or consummated on or after\n\nSeptember 30, 1995.","path":["OK Code","Title 14A"],"source_url":"https://www.oklegislature.gov/OK_Statutes/CompleteTitles/os14A.pdf","current_through":"2026-08-14","vintage":"open-us-law v2026.08, retrieved 2026-09-14","retrieved_at":"2026-09-14T18:32:36Z","sha256":"eb81d67f563fdf593e475e9e2cd75010ffe7e8d1ebfc39e8451725bb811ecfd4","source_id":"us-ok","stale":false,"prev":"us-ok/okla.-stat.-tit.-14a-14a-5-203","next":"us-ok/okla.-stat.-tit.-14a-14a-5-205"},"notice":"GroundRules: Original legal text. Not legal advice."}