Truth in Lending: 10.2.7.6 Series of Advances
When a creditor makes a series of advances as part of a closed-end credit transaction, whether the right of rescission applies to each advance depends on the manner in which the creditor has structured the transaction. Sometimes the creditor will treat the series of advances as a single transaction for disclosure purposes. For example, a consumer may enter into a loan for the whole amount necessary for a home improvement job, but the creditor may pay out the proceeds in a series of advances as the work is done.