Answer by Andy Zavoina:
No. This is a good practice to protect the bank because it verifies that the customer didn't drop the rescission notice in the mail yesterday and it is in force, but not yet received by you.
The model form in Reg. Z (H8 & H9) do not have this clause at the end.
Answer by John Burnett:
It's also important to note here that a signed confirmation won't "trump" a notice of rescission if the notice of rescission was made within the three business day rescission period. For instance, assume parties B and C both have the right to rescind, and the rescission period expires at 11:59 p.m. on Wednesday. On Thursday, before you disburse funds from the loan, B and C sign confirmations that they haven't rescinded. You disburse funds. On Friday morning, in comes a rescission form signed by C and postmarked on Wednesday.
You may be able to eventually get C (and maybe B) for fraud, but the rescission notice trumps the confirmation and you have to unwind the transaction.
First published on BankersOnline.com 5/20/02