Certificate of Non-Cancellation
Answer by Mary Beth Guard and John Burnett, BOL Gurus Guru BIOS
Question: On refinances, if a customer/member signs a right to cancel, do they also have to sign a separate “certificate of non-cancellation”?
Answer: No. Actually, neither signature is required by the rescission rules, but a signature is a prudent way to document delivery. The lender is free to use any
reasonable means to satisfy itself that the customer has not rescinded or canceled within the rescission period before disbursing the funds. One method is to
have the customer sign a certificate of non-cancellation. That certificate, if used, cannot be signed before the expiration of the rescission period.
The original version appeared in the September/October 2004 edition of the Oklahoma Bankers Association Compliance Informer.
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