Rescission and 4th of July

In reminding everyone that (for rescission purposes) July 4 (Sunday) is to be counted as one of the three business days even though we (and the Post Office) are close July 5 for the holiday, I'm getting questions about why... When this commentary change came out in 2002, was there any reason given?

Lois, you have to look at the definition of a business day in Reg. Z. July 5th is not a designated holiday.

As I recall, this wasn't a change. Richard Insley pointed this out. They clarified an existing rule.

Lois, I assume you meant to say July 5th has to counted as a business day, rather than July 4th?

I read the commentary to Reg Z re: business day but I'm still confused. Am I correct that:

1) Sunday, July 4th IS a federal holiday (even tho it falls on Sunday) and is NOT counted for recission

2) Monday, July 5th is not a designated holiday and, therefore, MUST be counted as a day for recission purposes.

Thanks for the clarification. I'm just half a bubble off plumb today.

You are correct. So now you may only be a 1/4 bubble off.

A 04 Rescission Calendar was posted here in the beginning of the year - but the calendar indicates the 5th would not be a business day..or am I reading the calendar wrong...of course I sent the calendar to all loan officers in Janurary.

We were using the same calendar. It's not correct based on the Reg Z definition. It appears to be using days the Feds are closed as the criteria rather than the definition of business day dpersfull noted above.

The jury is still out on this date as far as I'm concerned: The commentary illustrates using a Saturday as the holiday and when a holiday falls on a Saturday it's not mandatory that we provide a 'day off' to employees, but if the holiday falls on a Sunday we give the Monday off [actually don't know about the mandatory part] So I'm thinking that maybe the 5th would not be considered a business day and is considered a federal holiday. Could someone provide the link to the thread that fully describes what Richard Insley said about this.

I don't have a link to Richard's comments, but as Andy indicated Richard was saying the rule has always existed, they've just been "clarified" some.

The rule of thumb has been if the post office was closed, it could not count toward the rescission day, all though this is good rule of thumb it is not always accurate.

§226.2: Definitions and Rules of Construction (01/01/97)

(6) Business day means a day on which the 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 USC 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.

Supplement I, 226.2: Definitions and Rules of Construction (01/01/03)

2(a)(6) Business day. (added emphasis are mine)

2. Rescission rule. A more precise rule for what is a business day (all calendar days except Sundays and the federal legal holidays listed in 5 USC 6103(a)) applies when the right of rescission or mortgages subject to §226.32 are involved. (See also comment 31(c)(1)-1.) Four federal legal holidays are identified in 5 USC 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). The observed holiday (in the example, July 3) is a business day for purposes of rescission or the delivery of disclosures for certain high-cost mortgages covered by §226.32 .

Edited: I forgot to add that the regs names 4 specific holidays by date:

New Years Day - Jan 1
Independence Day - Jul 4
Veterans Day - Nov 11
Christmas Day - Dec 25

July 5 is not one of the designated dates.

Quote:

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Lois, I assume you meant to say July 5th has to counted as a business day, rather than July 4th?

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Yes. Thanks for the catch