Section 24-4.4-2-502 - Debtor's right to rescind; accruing interest prohibited during rescission period; disbursement of proceeds(1) 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 A creditor may not accrue interest during the period when a first lien mortgage transaction may be rescinded under Section 125 of the Consumer Credit Protection Act (15 U.S.C. 1635).(2) A creditor must make available for disbursement the proceeds of a transaction subject to subsection (1) on the later of:(a) the date the creditor is reasonably satisfied that the debtor has not rescinded the transaction; or(b) the first business day after the expiration of the rescission period under subsection (1).Amended by P.L. 159-2017,SEC. 4, eff. 7/1/2017.As added by P.L. 145-2008, SEC.20. Amended by P.L. 1-2009, SEC.135.