Question: My question relates to interest accrual during the rescission period. If an institution wants to accrue interest during the rescission period, and there are no other prohibitions, i.e., state law, usury issues, etc. how do you document that the borrower "has use" of the funds even though they can't physically access them until the rescission period passes?
Answer: The fact that you had to commit those funds by putting them aside for this purpose is evidence that the customer owes interest "for the use of" them.
BankersOnline is a free service made possible by the generous support of our
advertisers and sponsors. Advertisers and sponsors are not responsible for site content. Please help us keep BankersOnline FREE to all
banking professionals. Support our advertisers and sponsors by clicking
through to learn more about their products and services.