We currently charge interest starting from the date we actually fund the loan, which is after the rescission period ends. The loan is put on the system that same day so the original loan date is the funding date. However, the note and mortgage are dated the day the customer closes on the loan, which might be 5 days earlier. Should all the dates match and can we charge interest during the rescission period, from the date the customer signs the note? We also run into date problems with indirect loans. We put the new loan on the system when the dealer sends us the paperwork, which could be 3 or 4 days after the customer gets the goods. Should those loans be backdated or should they reflect the date we actually fund the loan? Or is this an accounting decision for the bank to decide?

Truth in Lending permits you to charge interest during the recission period. However, some states have laws that prohibit such a practice. Check your state law to find out if you can charge interest before the consumer has use of the funds.

As for dating documents, again state law would be the rule. Federal compliance regulations don't dictate how you date and board loans -- although examiners do check them for compliance questions such as were disclosures made on time.

The definition of interest in Texas precludes charging interest during the rescission period. "Interest is compensation for the use, forbearance or detention of money. The term does not include time price differential, regardless of how it is denominated."