38.1k views
3 votes
The Federal Truth-in-Lending Law (Regulation Z) gives the borrower a 3-day right of rescission when the loan is ________.

User Joel Filho
by
8.2k points

1 Answer

6 votes

Final answer:

The Federal Truth-in-Lending Law (Regulation Z) provides a 3-day right of rescission for borrowers in specific situations.

Step-by-step explanation:

The Federal Truth-in-Lending Law (Regulation Z) gives the borrower a 3-day right of rescission when the loan is secured by the borrower's primary residence, such as a home mortgage. This means that if you take out a loan to buy a house, you have the right to cancel the loan within three business days of closing, without any penalty or obligation.

User Per Svensson
by
9.1k points