Finance
An Oregon borrower obtains a home equity line of credit (HELOC) secured by a lien on their primary residence. Under federal law, the borrower has a right of rescission (right to cancel) for how many days?
A1 business day
B3 business days✓ Correct
C5 business days
DNo right of rescission exists for HELOCs
Explanation
Under the federal Truth in Lending Act (TILA, Regulation Z), borrowers have a 3 business day right of rescission for non-purchase money loans secured by their primary residence — including HELOCs, cash-out refinances, and home equity loans. The right does NOT apply to purchase money mortgages (the loan used to buy the home). Oregon follows this federal standard.
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