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

User Joel Filho
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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
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