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 A creditor may not accrue interest during the period when a first lien mortgage transaction may be rescinded under Section 125 of the Consumer Credit Protection Act (15 U.S.C. 1635).

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

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 (1) the date the creditor is reasonably satisfied that the debtor has not rescinded the transaction; or

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

      [Pre-2026 Revision Citation: 24-4.4-2-502.]

As added by P.L.115-2026, SEC.97.