Opinion ID: 711689
Heading Depth: 2
Heading Rank: 4

Heading: Truth in Lending Act, 15 U.S.C. Sec. 1601, et seq.

Text: 11 The Averys argue that the Truth-in-Lending Act, 15 U.S.C. Sec. 1601, et seq. (1982) (TILA), applies to their loan 3 and that Mission Viejo Bank violated TILA by not giving the Averys the required Notice of Right to Cancel. 15 U.S.C. Sec. 1635(a) (1982). A lender's violation of TILA allows the borrower to rescind a consumer loan secured by the borrower's primary dwelling. Id. The district court made a factual finding that the Averys were provided with two copies of a Notice of Right to Cancel the loan on or about September 6, 1990, which was the date of the execution of the note and deed of trust. These findings are not clearly erroneous. 12 Nonetheless, the district court declined to decide whether TILA applied to the Averys' loan because even if TILA applied, the Averys effectively waived their right to rescind the loan transaction. Based on the same reasoning employed by the district court, we also find it unnecessary to decide this issue.
13 TILA gives the consumer a three-day right to rescind a credit transaction. 15 U.S.C. Sec. 1635(a); 12 C.F.R. Sec. 226.23(a) (1995). Under TILA the right to rescind a loan may be waived if a consumer determines that the extension of credit is needed to meet a bona fide personal financial emergency. 15 U.S.C. Sec. 1635(d); 12 C.F.R. Sec. 226.23(e). The district court made the following factual findings: 1) On or about September 16, 1990, Herbert Avery hand-wrote a letter to Empire Financial, 4 requesting that the three day rescission period be waived; and 2) In his letter to Empire Financial, Dr. Avery stated that the request to waive the three day rescission period was necessitated by a need of the Averys to refinance their property and to prevent a foreclosure sale scheduled for Friday, September 7, 1990. The district court held that Dr. Avery was acting on his own behalf and as an agent for Mrs. Avery, in executing the waiver letter to Empire Financial. Although the TILA regulation, 12 C.F.R. Sec. 226.23(e), states that a waiver should bear the signatures of all consumers entitled to rescind, we agree with the district court that nothing in the regulation prohibits a consumer who is entitled to rescind from acting through an agent. Therefore, even if TILA applied to the Averys' loan transaction, the Averys waived their right to rescind.