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#1112062 - 01/15/09 10:33 PM rescission
gunches Offline
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Joined: Dec 2005
Posts: 210
We are closing a loan today. Our bank is open on Monday, January 19th (Martin Luther King day). When is our rescission up. I'm having a brain dead day
Thank you

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Lending Compliance
#1112065 - 01/15/09 10:38 PM Re: rescission gunches
Ray_ Offline
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Dallas, TX
January 20.

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#1112068 - 01/15/09 10:41 PM Re: rescission Ray_
gunches Offline
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Joined: Dec 2005
Posts: 210
So funds would be disbursed on the 21st or the 20th? Now that so many banks are open these holidays, does this go by days there is mail yet?

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#1112073 - 01/15/09 10:45 PM Re: rescission gunches
Ray_ Offline
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Dallas, TX
MLK Day is a designated holiday and can't be counted as a business day even if your bank is open.

http://www.bankersonline.com/compliance/guru2008/gurus_comp031708a.html

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#1112080 - 01/15/09 10:56 PM Re: rescission Ray_
David Dickinson Offline
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David Dickinson
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Central City, NE
If you close the loan on 1/15, the 16th is day 1, 17th = day 2 and 20th = day 3. You can advance on 1/21 at the earliest.
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#1112188 - 01/16/09 12:48 PM Re: rescission David Dickinson
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Skittles
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TN
Like Ray stated, just because your bank is open does not make MLK day a day for rescission. This day is specifically spelled out in Regulation Z.
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#1112205 - 01/16/09 01:18 PM Re: rescission gunches
Richard Insley Offline
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Richard Insley
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Toano, VA
Originally Posted By: gunches
does this go by days there is mail ?

That's a good rule of thumb, but the exact answer lies in the definition of "business day" [Sec. 226.2(a)(6)]:
(6) Business day means a day on which a creditor's offices are open to the public for carrying on substantially all of its business functions. However, for purposes of rescission under 226.15 and 226.23, and for purposes of 226.31, the term means all calendar days except Sundays and the legal public holidays specified in 5 U.S.C. 6103(a), such as New Year's Day, the birthday of Martin Luther King, Jr., Washington's Birthday, Memorial Day, Independence Day, Labor Day, Columbus Day, Veterans Day, Thanksgiving Day, and Christmas Day.

Notice that this definition is really 2 mutually-exclusive definitions in one. Only the second definition applies to ROR.
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#1112265 - 01/16/09 02:30 PM Re: rescission Richard Insley
RR Joker Offline
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The Swamp
Think about it this way as well...the mail will not run on the 19th, therefore right to cancel is stuck until the next day if excersized.
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#1112329 - 01/16/09 03:31 PM Re: rescission RR Joker
Dan Persfull Offline
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Dan Persfull
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Bloomington, IN
As Richard said relying on when the post office is open/closed is a good rule of thumb but it does not always hold true. There are 4 holidays designated by a specific date: New Year's Day, Independence Day, Veterans' Day and Christmas Day.

If any of these 4 holidays fall on a Sunday and the post office observes the holiday either on the preceding Saturday or the following Monday those days are still rescission days even though the post office is closed.
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