source:
  type: regulation
  id: tila-12usc-1635
  authority: 15 U.S.C. §1635 — Right of rescission as to certain transactions
  description: 'TILA statutory right-of-rescission section. Governs the

    consumer''s right to rescind any consumer credit transaction in

    which a security interest is or will be retained in the

    consumer''s principal dwelling (other than a residential mortgage

    transaction), the three-business-day window, the creditor''s

    20-day return-of-money obligation upon rescission, the 3-year

    outer limit on the right, and the rescission-rights-in-

    foreclosure provisions. Implemented in Regulation Z at 12 CFR

    §1026.23 (closed-end) and §1026.15 (open-end).

    '
obligations:
- id: tila-12usc-1635-a
  canonical_id: tila-12usc-1635-a
  section: 15 U.S.C. §1635(a)
  description: '(a): (a) Disclosure of obligor’s right to rescind Except as otherwise provided in this
    section, in the case of any consumer credit transaction (including opening or increasing the credit
    limit for an open end credit plan) in which a security interest, including any such interest arising
    by operation of l…'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - usc-statute
  primary_source:
    tier: 1
    authority: 15 U.S.C. §1635(a)
    source_class: tila-statute
    source_url: https://www.law.cornell.edu/uscode/text/15/1635
    snapshot_id: c7e63ca8edfbc128
    fetched_at: '2026-05-22T18:51:50Z'
    content_hash: sha256:390bb179369237dd4cce183215a2ff988f42d777fd354bd9b3c3d231478655f2
    paragraph_quote: (a) Disclosure of obligor’s right to rescind Except as otherwise provided in this
      section, in the case of any consumer credit transaction (including opening or increasing the credit
      limit for an open end credit plan) in which a security interest, including any such interest arising
      by operation of law, is or will be retained or acquired in any property which is used as the principal
      dwelling of the person to whom credit is extended, the obligor shall have the right to rescind the
      transaction until midnight of the third business day following the consummation of the transaction
      or the delivery of the information and rescission forms required under this section together with
      a statement containing the material disclosures required under this subchapter, whichever is later,
      by notifying the creditor , in accordance with regulations of the Bureau, of his intention to do
      so. The creditor shall clearly and conspicuously disclose, in accordance with regulations of the
      Bureau, to any obligor in a transaction subject to this section the rights of the obligor under
      this section. The creditor shall also provide, in accordance with regulations of the Bureau, appropriate
      forms for the obligor to exercise his right to rescind any transaction subject to this section.
    drafter_attestation: Verbatim subsection of 15 U.S.C. §1635 from Cornell LII snapshot c7e63ca8edfbc128;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: tila-12usc-1635-b
  canonical_id: tila-12usc-1635-b
  section: 15 U.S.C. §1635(b)
  description: '(b): (b) Return of money or property following rescission When an obligor exercises his
    right to rescind under subsection (a), he is not liable for any finance or other charge, and any security
    interest given by the obligor, including any such interest arising by operation of law, becomes void
    upon such …'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - usc-statute
  primary_source:
    tier: 1
    authority: 15 U.S.C. §1635(a)
    source_class: tila-statute
    source_url: https://www.law.cornell.edu/uscode/text/15/1635
    snapshot_id: c7e63ca8edfbc128
    fetched_at: '2026-05-22T18:51:50Z'
    content_hash: sha256:390bb179369237dd4cce183215a2ff988f42d777fd354bd9b3c3d231478655f2
    paragraph_quote: (b) Return of money or property following rescission When an obligor exercises his
      right to rescind under subsection (a), he is not liable for any finance or other charge, and any
      security interest given by the obligor, including any such interest arising by operation of law,
      becomes void upon such a rescission. Within 20 days after receipt of a notice of rescission, the
      creditor shall return to the obligor any money or property given as earnest money, downpayment,
      or otherwise, and shall take any action necessary or appropriate to reflect the termination of any
      security interest created under the transaction. If the creditor has delivered any property to the
      obligor, the obligor may retain possession of it. Upon the performance of the creditor ’s obligations
      under this section, the obligor shall tender the property to the creditor , except that if return
      of the property in kind would be impracticable or inequitable, the obligor shall tender its reasonable
      value. Tender shall be made at the location of the property or at the residence of the obligor,
      at the option of the obligor. If the creditor does not take possession of the property within 20
      days after tender by the obligor, ownership of the property vests in the obligor without obligation
      on his part to pay for it. The procedures prescribed by this subsection shall apply except when
      otherwise ordered by a court.
    drafter_attestation: Verbatim subsection of 15 U.S.C. §1635 from Cornell LII snapshot c7e63ca8edfbc128;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: tila-12usc-1635-c
  canonical_id: tila-12usc-1635-c
  section: 15 U.S.C. §1635(c)
  description: '(c): (c) Rebuttable presumption of delivery of required disclosures Notwithstanding any
    rule of evidence, written acknowledgment of receipt of any disclosures required under this subchapter
    by a person to whom information, forms, and a statement is required to be given pursuant to this section
    does no mo…'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - usc-statute
  primary_source:
    tier: 1
    authority: 15 U.S.C. §1635(a)
    source_class: tila-statute
    source_url: https://www.law.cornell.edu/uscode/text/15/1635
    snapshot_id: c7e63ca8edfbc128
    fetched_at: '2026-05-22T18:51:50Z'
    content_hash: sha256:390bb179369237dd4cce183215a2ff988f42d777fd354bd9b3c3d231478655f2
    paragraph_quote: (c) Rebuttable presumption of delivery of required disclosures Notwithstanding any
      rule of evidence, written acknowledgment of receipt of any disclosures required under this subchapter
      by a person to whom information, forms, and a statement is required to be given pursuant to this
      section does no more than create a rebuttable presumption of delivery thereof.
    drafter_attestation: Verbatim subsection of 15 U.S.C. §1635 from Cornell LII snapshot c7e63ca8edfbc128;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: tila-12usc-1635-d
  canonical_id: tila-12usc-1635-d
  section: 15 U.S.C. §1635(d)
  description: '(d): (d) Modification and waiver of rights The Bureau may, if it finds that such action
    is necessary in order to permit homeowners to meet bona fide personal financial emergencies, prescribe
    regulations authorizing the modification or waiver of any rights created under this section to the
    extent and unde…'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - usc-statute
  primary_source:
    tier: 1
    authority: 15 U.S.C. §1635(a)
    source_class: tila-statute
    source_url: https://www.law.cornell.edu/uscode/text/15/1635
    snapshot_id: c7e63ca8edfbc128
    fetched_at: '2026-05-22T18:51:50Z'
    content_hash: sha256:390bb179369237dd4cce183215a2ff988f42d777fd354bd9b3c3d231478655f2
    paragraph_quote: (d) Modification and waiver of rights The Bureau may, if it finds that such action
      is necessary in order to permit homeowners to meet bona fide personal financial emergencies, prescribe
      regulations authorizing the modification or waiver of any rights created under this section to the
      extent and under the circumstances set forth in those regulations.
    drafter_attestation: Verbatim subsection of 15 U.S.C. §1635 from Cornell LII snapshot c7e63ca8edfbc128;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: tila-12usc-1635-e
  canonical_id: tila-12usc-1635-e
  section: 15 U.S.C. §1635(e)
  description: '(e): (e) Exempted transactions; reapplication of provisions This section does not apply
    to— (1) a residential mortgage transaction as defined in section 1602(w) [1] of this title; (2) a
    transaction which constitutes a refinancing or consolidation (with no new advances) of the principal
    balance then due a…'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - usc-statute
  primary_source:
    tier: 1
    authority: 15 U.S.C. §1635(a)
    source_class: tila-statute
    source_url: https://www.law.cornell.edu/uscode/text/15/1635
    snapshot_id: c7e63ca8edfbc128
    fetched_at: '2026-05-22T18:51:50Z'
    content_hash: sha256:390bb179369237dd4cce183215a2ff988f42d777fd354bd9b3c3d231478655f2
    paragraph_quote: (e) Exempted transactions; reapplication of provisions This section does not apply
      to— (1) a residential mortgage transaction as defined in section 1602(w) [1] of this title; (2)
      a transaction which constitutes a refinancing or consolidation (with no new advances) of the principal
      balance then due and any accrued and unpaid finance charges of an existing extension of credit by
      the same creditor secured by an interest in the same property; (3) a transaction in which an agency
      of a State is the creditor ; or (4) advances under a preexisting open end credit plan if a security
      interest has already been retained or acquired and such advances are in accordance with a previously
      established credit limit for such plan.
    drafter_attestation: Verbatim subsection of 15 U.S.C. §1635 from Cornell LII snapshot c7e63ca8edfbc128;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: tila-12usc-1635-f
  canonical_id: tila-12usc-1635-f
  section: 15 U.S.C. §1635(f)
  description: '(f): (f) Time limit for exercise of right An obligor’s right of rescission shall expire
    three years after the date of consummation of the transaction or upon the sale of the property, whichever
    occurs first, notwithstanding the fact that the information and forms required under this section
    or any other …'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - usc-statute
  primary_source:
    tier: 1
    authority: 15 U.S.C. §1635(a)
    source_class: tila-statute
    source_url: https://www.law.cornell.edu/uscode/text/15/1635
    snapshot_id: c7e63ca8edfbc128
    fetched_at: '2026-05-22T18:51:50Z'
    content_hash: sha256:390bb179369237dd4cce183215a2ff988f42d777fd354bd9b3c3d231478655f2
    paragraph_quote: (f) Time limit for exercise of right An obligor’s right of rescission shall expire
      three years after the date of consummation of the transaction or upon the sale of the property,
      whichever occurs first, notwithstanding the fact that the information and forms required under this
      section or any other disclosures required under this part have not been delivered to the obligor,
      except that if (1) any agency empowered to enforce the provisions of this subchapter institutes
      a proceeding to enforce the provisions of this section within three years after the date of consummation
      of the transaction, (2) such agency finds a violation of this section, and (3) the obligor’s right
      to rescind is based in whole or in part on any matter involved in such proceeding, then the obligor’s
      right of rescission shall expire three years after the date of consummation of the transaction or
      upon the earlier sale of the property, or upon the expiration of one year following the conclusion
      of the proceeding, or any judicial review or period for judicial review thereof, whichever is later.
    drafter_attestation: Verbatim subsection of 15 U.S.C. §1635 from Cornell LII snapshot c7e63ca8edfbc128;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: tila-12usc-1635-g
  canonical_id: tila-12usc-1635-g
  section: 15 U.S.C. §1635(g)
  description: '(g): (g) Additional relief In any action in which it is determined that a creditor has
    violated this section, in addition to rescission the court may award relief under section 1640 of
    this title for violations of this subchapter not relating to the right to rescind.'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - usc-statute
  primary_source:
    tier: 1
    authority: 15 U.S.C. §1635(a)
    source_class: tila-statute
    source_url: https://www.law.cornell.edu/uscode/text/15/1635
    snapshot_id: c7e63ca8edfbc128
    fetched_at: '2026-05-22T18:51:50Z'
    content_hash: sha256:390bb179369237dd4cce183215a2ff988f42d777fd354bd9b3c3d231478655f2
    paragraph_quote: (g) Additional relief In any action in which it is determined that a creditor has
      violated this section, in addition to rescission the court may award relief under section 1640 of
      this title for violations of this subchapter not relating to the right to rescind.
    drafter_attestation: Verbatim subsection of 15 U.S.C. §1635 from Cornell LII snapshot c7e63ca8edfbc128;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: tila-12usc-1635-h
  canonical_id: tila-12usc-1635-h
  section: 15 U.S.C. §1635(h)
  description: '(h): (h) Limitation on rescission An obligor shall have no rescission rights arising solely
    from the form of written notice used by the creditor to inform the obligor of the rights of the obligor
    under this section, if the creditor provided the obligor the appropriate form of written notice published
    and…'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - usc-statute
  primary_source:
    tier: 1
    authority: 15 U.S.C. §1635(a)
    source_class: tila-statute
    source_url: https://www.law.cornell.edu/uscode/text/15/1635
    snapshot_id: c7e63ca8edfbc128
    fetched_at: '2026-05-22T18:51:50Z'
    content_hash: sha256:390bb179369237dd4cce183215a2ff988f42d777fd354bd9b3c3d231478655f2
    paragraph_quote: (h) Limitation on rescission An obligor shall have no rescission rights arising solely
      from the form of written notice used by the creditor to inform the obligor of the rights of the
      obligor under this section, if the creditor provided the obligor the appropriate form of written
      notice published and adopted by the Bureau, or a comparable written notice of the rights of the
      obligor, that was properly completed by the creditor , and otherwise complied with all other requirements
      of this section regarding notice.
    drafter_attestation: Verbatim subsection of 15 U.S.C. §1635 from Cornell LII snapshot c7e63ca8edfbc128;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: tila-12usc-1635-i
  canonical_id: tila-12usc-1635-i
  section: 15 U.S.C. §1635(i)
  description: '(i): (i) Rescission rights in foreclosure (1) In general Notwithstanding section 1649
    of this title , and subject to the time period provided in subsection (f), in addition to any other
    right of rescission available under this section for a transaction, after the initiation of any judicial
    or nonjudicial…'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - usc-statute
  primary_source:
    tier: 1
    authority: 15 U.S.C. §1635(a)
    source_class: tila-statute
    source_url: https://www.law.cornell.edu/uscode/text/15/1635
    snapshot_id: c7e63ca8edfbc128
    fetched_at: '2026-05-22T18:51:50Z'
    content_hash: sha256:390bb179369237dd4cce183215a2ff988f42d777fd354bd9b3c3d231478655f2
    paragraph_quote: (i) Rescission rights in foreclosure (1) In general Notwithstanding section 1649
      of this title , and subject to the time period provided in subsection (f), in addition to any other
      right of rescission available under this section for a transaction, after the initiation of any
      judicial or nonjudicial foreclosure process on the primary dwelling of an obligor securing an extension
      of credit, the obligor shall have a right to rescind the transaction equivalent to other rescission
      rights provided by this section, if— (A) a mortgage broker fee is not included in the finance charge
      in accordance with the laws and regulations in effect at the time the consumer credit transaction
      was consummated; or (B) the form of notice of rescission for the transaction is not the appropriate
      form of written notice published and adopted by the Bureau or a comparable written notice, and otherwise
      complied with all the requirements of this section regarding notice. (2) Tolerance for disclosures
      Notwithstanding section 1605(f) of this title , and subject to the time period provided in subsection
      (f), for the purposes of exercising any rescission rights after the initiation of any judicial or
      nonjudicial foreclosure process on the principal dwelling of the obligor securing an extension of
      credit, the disclosure of the finance charge and other disclosures affected by any finance charge
      shall be treated as being accurate for purposes of this section if the amount disclosed as the finance
      charge does not vary from the actual finance charge by more than $35 or is greater than the amount
      required to be disclosed under this subchapter. (3) Right of recoupment under State law Nothing
      in this subsection affects a consumer’s right of rescission in recoupment under State law. (4) Applicability
      This subsection shall apply to all consumer credit transactions in existence or consummated on or
      after September 30, 1995 . ( Pub. L. 90–321, title I, § 125 , May 29, 1968 , 82 Stat. 153 ; Pub.
      L. 93–495, title IV , §§ 404, 405, 412, Oct. 28, 1974 , 88 Stat. 1517 , 1519; Pub. L. 96–221, title
      VI, § 612(a)(1) , (3)–(6), Mar. 31, 1980 , 94 Stat. 175 , 176; Pub. L. 98–479, title II, § 205 ,
      Oct. 17, 1984 , 98 Stat. 2234 ; Pub. L. 104–29 , §§ 5, 8, Sept. 30, 1995 , 109 Stat. 274 , 275;
      Pub. L. 111–203, title X, § 1100A(2) , July 21, 2010 , 124 Stat. 2107 .) [1] See References in Text
      note below.
    drafter_attestation: Verbatim subsection of 15 U.S.C. §1635 from Cornell LII snapshot c7e63ca8edfbc128;
      body isolated between nav and notes; substring-verified.
  judgment: false
