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#2271982 - 06/22/22 08:04 PM Reg Z Precise Business Day
Darth HMDA, CRCM, CAMS Offline
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Darth HMDA, CRCM, CAMS
Joined: Dec 2013
Posts: 1,387
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Hello compliance world!

I use the BOL TRID Date Calculator (and have for years). It lists Monday, July 5, 2021 as a Holiday for CD wait period calculation purposes. From what I can tell based on Comment 2(a)(6)-2 and other threads I have read, this would be considered as a "precise" business day.

Do you agree that monday counts as a business day for purposes of the CD waiting period, and that an additional day would not be added to the wait period? Thank you!

2. Rule for rescission, disclosures for certain mortgage transactions, and private education loans. A more precise rule for what is a business day (all calendar days except Sundays and the Federal legal holidays specified in 5 U.S.C. 6103(a)) applies when the right of rescission, the receipt of disclosures for certain dwelling- or real estate-secured mortgage transactions under §§ 1026.19(a)(1)(ii), 1026.19(a)(2), 1026.19(e)(1)(iii)(B), 1026.19(e)(1)(iv), 1026.19(e)(2)(i)(A), 1026.19(e)(4)(ii), 1026.19(f)(1)(ii), 1026.19(f)(1)(iii), 1026.20(e)(5), 1026.31(c), or the receipt of disclosures for private education loans under § 1026.46(d)(4) is involved. Four Federal legal holidays are identified in 5 U.S.C. 6103(a) by a specific date: New Year's Day, January 1; Independence Day, July 4; Veterans Day, November 11; and Christmas Day, December 25. When one of these holidays (July 4, for example) falls on a Saturday, Federal offices and other entities might observe the holiday on the preceding Friday (July 3). In cases where the more precise rule applies, the observed holiday (in the example, July 3) is a business day.
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#2271988 - 06/22/22 10:42 PM Re: Reg Z Precise Business Day Darth HMDA, CRCM, CAMS
rlcarey Online
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rlcarey
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Galveston, TX
July 5th is a business day for the CD three business day wait. But the fourth falls on a Monday this year, so I am not sure where this is headed.
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#2272014 - 06/23/22 04:17 PM Re: Reg Z Precise Business Day Darth HMDA, CRCM, CAMS
Darth HMDA, CRCM, CAMS Offline
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Darth HMDA, CRCM, CAMS
Joined: Dec 2013
Posts: 1,387
CA
Hi Randy - thanks for the response. My question was about 2021. July 4th fell on a Sunday and the holiday was "observed" on Monday, July 5th.

Reading the comment above, this would appear to still be considered a business day (precise definition) for the CD wait time, meaning an additional day would not be added. Do you agree? Am I interpreting this wrong? Thank you!
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#2272016 - 06/23/22 04:28 PM Re: Reg Z Precise Business Day Darth HMDA, CRCM, CAMS
rlcarey Online
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rlcarey
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Galveston, TX
July 4th is a precise-definition non-business day for the purposes of the right of rescission, the receipt of disclosures for certain dwelling- or real estate-secured mortgage transactions under §§ 1026.19(a)(1)(ii), 1026.19(a)(2), 1026.19(e)(1)(iii)(B), 1026.19(e)(1)(iv), 1026.19(e)(2)(i)(A), 1026.19(e)(4)(ii), 1026.19(f)(1)(ii), 1026.19(f)(1)(iii), 1026.20(e)(5), 1026.31(c).

July 5th is not.
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#2272028 - 06/23/22 06:13 PM Re: Reg Z Precise Business Day Darth HMDA, CRCM, CAMS
Richard Insley Offline
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Toano, VA
It helps to read from the source. Reg Z's definition of "business day" references 5 USC 6103(a) ( https://www.law.cornell.edu/uscode/text/5/6103 ) and does NOT reference 5 USC 6103(b).

Paragraph "a" is a simple list. It contains no mention of "observed dates" or any other deviations from the precise dates that were set by Congress when each holiday was enacted. Paragraph "b" (which was intentionally excluded from Reg Z's definition) is where you find the concept of "observed dates."
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#2272085 - 06/24/22 04:12 PM Re: Reg Z Precise Business Day Darth HMDA, CRCM, CAMS
John Burnett Online
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John Burnett
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Cape Cod
[quote][/quote]
Originally Posted by Darth HMDA, CRCM, CAMS
Hi Randy - thanks for the response. My question was about 2021. July 4th fell on a Sunday and the holiday was "observed" on Monday, July 5th.

Reading the comment above, this would appear to still be considered a business day (precise definition) for the CD wait time, meaning an additional day would not be added. Do you agree? Am I interpreting this wrong? Thank you!


You are correct. July 5, 2021, was a business day fpr the purposes listed under the definition in § 1026.2(a)(6) after the first sentence. If a bank was open on that day for conducting essentially all of its business, it would have been counted as a business day for other purposes (ordinary definition, from § 1026.2(a)(6), first sentence).
Last edited by John Burnett; 06/24/22 04:14 PM.
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#2272087 - 06/24/22 04:23 PM Re: Reg Z Precise Business Day Darth HMDA, CRCM, CAMS
John Burnett Online
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John Burnett
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When the Fed added the example of July 4 falling on Saturday, but observed on Friday back in 2002 to comment 2(a)6)-2 12 CFR 226, its intent was to include any of the then 4 specific-date holidays falling on a Saturday (overserved on Friday) or Sunday (observed on Sunday). The text of the comment only addresses the Saturday/Friday combination. But the prefatory text of the final rule makes it clear that it meant to apply it also to Sunday/Monday combinations. See 66 FR 64381 (proposed rule) and 67 FR 19980 (final rule).
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