IBA Compliance Connection

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For the right of rescission purposes, are there still four legal holidays that still count as a business day if they fall on Sunday, even if we observe the holiday on a Monday?

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Yes, when calculating the three-business day rescission period, there are four federal holidays that may be counted as business days when observed on the preceding Friday or following Monday.

For rescission purposes, “business day” means all calendar days except Sundays and specified legal public holidays. There are four federal legal holidays that occur on 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 falls on a Saturday and is observed on the preceding Friday or falls on a Sunday and is observed on the following Monday, the day the holiday is observed is counted as a business day.

For resources related to our guidance, please see:

  • Regulation Z, 12 CFR 1026.2(a)(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 §§ 1026.15 and 1026.23 . . . 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.”)
  • Regulation Z, Official Interpretation, Paragraph 2(a)(6), Comment 2 (“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 . . . 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.”)