Statute 50-1014: Rescission of contract under Truth-in-Lending Act; notice to
creditor; timely return of consideration required; computation of time
period for avoidance of contract.
(a) If a transaction for which a loan broker has charged any
fee or collected any costs is rescinded by any person under the provisions
of the Truth-in-Lending Act (15 U.S.C. 1601-1667e) within 20 calendar days
after a notice of the rescission has been delivered to the creditor, the
loan broker shall return to the person any money or property that has been
given to the loan broker, including property or money the loan broker
delivered or directed to third parties.
(b) For purposes of calculating the time period during which a person
may avoid a contract under K.S.A. 50-640, and amendments thereto, a
contract with a loan broker shall be considered to be a sale of services
that occurs on the date the person receives the disclosure document
required by subsection (d) of K.S.A. 50-1006.
History: L. 1988, ch. 328, § 14; July 1.