Opinion ID: 444627
Heading Depth: 2
Heading Rank: 4

Heading: The Right of Rescission

Text: 11 Finally, the Olsons' complaint alleges that they have a right to rescind the loans under section 1635 of the Act. This section provides a right of rescission as to consumer-credit transactions in which the security interest is the consumer's principal place of residence. 15 U.S.C. Sec. 1635(a). 5 Assuming that the mortgages which secure some of the loans involve the Olsons' current or intended place of residence, the Olsons are still not entitled to rescind. As previously stated, the Act exempts credit transactions for agricultural purposes. 15 U.S.C. Sec. 1603(1). The Act also exempts loans to corporations. Id. Section 1603 specifically states that these exemptions apply to the entire subchapter, which includes section 1635. See Sherrill v. Verde Capital Corp., 719 F.2d 364, 367 (11th Cir.1983). Thus, the Olsons are not entitled to rescind the twenty-seven loans which are exempt from the coverage of the Act under the agricultural-purpose or corporate-maker exemptions. 12 As noted above, four of the loans involved in this action do not come within either the agricultural-purpose or corporate-maker exemption. However, none of these loans is secured by the Olsons' principal place of residence as required by section 1635(a). Therefore, the Olsons are not entitled to rescind these loans. Thus, the Act's right of rescission is not applicable to any of the loans involved in this action.