Hi -
Has the rescission period been violated if the funds are disbursed from the loan but the customer doesn't receive the disbursement check until after the rescission period expired because the check was not given to the borrower?

The loan history shows funds were issued prior to the rescission date, but the check cleared several days after the rescission date.

Thanks for your help.

Reg Z Commentary - 226.23(c).

You should however have procedures in place to document the check was not delivered to the consumer until after the rescission period expired.

Dan,
What sorts of procedures would remedy this?
A notesheet comment in the file stating that the check wasn't mailed? A hold on the check until the end of the ROR period?

How and when the check is disbursed and delivered should be outlined in your closing procedures, i.e. For all loans subject Regulation Z's 226.15 and 226.23 the consumer will not be provided access the to funds until ..........

For those closed by an outside settlement agent the directions should be in the closing instructions for the settlement agent not to disburse funds until X.

Thanks everyone for the feedback.