Reply by PAW_Fl on 12/22/05 7:35pm
Msg #84236
The "observed" day is NOT a holiday. It is simply the day the holiday is observed. For rescission purposes, Reg Z (Title 12) denotes four holidays that fall on specific days, 1/1, 7/4, 11/11 and 12/25. Those are the **Federal Holidays** and are not counted as a day of rescission. If those days fall on a weekend, the government, and many other businesses, including the Post Office, often observe the holiday either the day before or the day after. However, those observed days are NOT holidays for rescission purposes.
This has been explained so many times in the past, citing the rulings, the commentary and the supplement to the Federal Code. Do a search and see for yourself.
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Reply by John_NCal on 12/22/05 8:55pm
Msg #84250
Re:RTC Revisited
I did a search and came up with the following commentaries and links.
“Business day,” for purposes of the rescission rules, includes all calendar days except Sundays and federal legal public holidays, 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 Saturdays are business days for purposes of the rescission rules.
For example, if consummation and delivery of the material disclosures and rescission notice all occur on a Friday afternoon, the rescission period would include Saturday, Monday, and Tuesday, with the rescission period ending at midnight on Tuesday. (This assumes there are no federal public holidays in that period.)
http://www.complianceheadquarters.com/Res__Real_Estate/RRE_Articles/4_14_05.html
1. When calculating the 3-day rescission period, you should:
a. Only count the days your financial institution is open for substantially all retail transactions. Saturday would be included, but only if you’re open for business.
b. Count all days (Monday through Saturday) but not Sundays and federal legal holidays, since the mail is not delivered on these days.
c. Count Monday through Friday and NOT weekends, since weekends are not business days for financial institutions.
d. Count out an extra day or two just to be safe and to prevent compliance problems with these rules.
The correct answer is “b.” Under Reg Z, you must calculate a rescission period that lasts 3 business days. Under the law, a “business day” is defined as Monday though Saturday, and excluding Sundays and federal legal holidays. The rule hinges more on when mail is delivered than on your financial institution’s business hours. Therefore, it is irrelevant if your offices are open or closed on the weekends. The other options are incorrect descriptions of the rule. Letter “d” is inappropriate since it extends the rescission period longer than what the law requires.
[12 CFR 226.2(6)]--link to RRE Res Page
http://www.complianceheadquarters.com/Res__Real_Estate/RRE_Articles/10_12_04Answers.html
I still think the post open/closed "rule of thumb" has some value.
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