Coldloft is a duly formed corporation in Green one of the United States. Coldloft has entered into a contract for the purchase of a single family dwelling located in a tony beach area of Green. It is going to finance the purchase of the property through a residential mortgage loan from Bank of Green.
Coldloft is purchasing the property for the exclusive use of Danny, the CEO and sole shareholder of Coldloft, and his family so that Danny can live closer to Coldloft’s corporate offices. No commercial activities will be conducted at the dwelling. Danny duly executes all of the closing documents on behalf of Coldloft.
Two days after the proper closing of the purchase and transfer of the property to Coldloft, the corporation notifies Bank of Green of its intent to rescind the purchase of the Green property in a letter executed by Danny.
You are the lead paralegal working for the bank who provided the loan for Coldloft’s Green property. The bank is concerned about the effect of Coldloft’s rescission letter.
In your answer, explain 1) how rescission occurs under the Truth-in-Lending Act, 2) who has the right to rescind and who does not have the right to rescind, and 3) what are your recommendations on Coldloft’s rescission demand. Please cite the attached chapter (there is a recission section) in APA format at least 1x.