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2012 Rescission Calendar
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2012 Rescission Calendar
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Posted by Harry [NR] on 1/3/12 10:38am
Msg #408099

2012 Rescission Calendar

Our 2012 Rescission Calendar is ready. Before I release it, however, I'd like to know if anyone is aware of any changes to Regulation Z or the Official Staff Interpretation of "business day" with respect to named holidays falling on Saturdays and Sundays. Regulation Z excludes "legal public holidays specified in 5 U.S.C. 6103(a)" and, at least as of 2008, the interpretation was to exclude the specific named holiday, NOT the recognized holiday if that day is different. This year, for example, January 1 fell on a Sunday and Veterans Day, 11/11/2012, falls on a Sunday. The "observed" holidays fall on the following Mondays. According to Regulation Z and the Official Staff Interpretation in a 2008 issue of the Federal Register, the Mondays are treated like normal days for calculating rescission. Unless something has changed, there appear to be several rescission calendars in circulation that are wrong again. This has happened in the past, as well. Comments?

Harry
Notary Rotary

Regulation Z, Truth in Lending
http://www.fdic.gov/regulations/laws/rules/6500-1400.html
Section 226.2(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 §§ 226.15 and 226.23, and for purposes of §§ 226.19(a)(1)(ii), 226.19(a)(2), 226.31, and 226.46(d)(4), 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.

United States Holidays
http://www.law.cornell.edu/uscode/5/6103.shtml
5 U.S.C. 6103(a). The following are legal public holidays:
New Year’s Day, January 1.
Birthday of Martin Luther King, Jr., the third Monday in January.
Washington’s Birthday, the third Monday in February.
Memorial Day, the last Monday in May.
Independence Day, July 4.
Labor Day, the first Monday in September.
Columbus Day, the second Monday in October.
Veterans Day, November 11.
Thanksgiving Day, the fourth Thursday in November.
Christmas Day, December 25.

Federal Register / Vol. 73, No. 147 / Wednesday, July 30, 2008
http://edocket.access.gpo.gov/2008/pdf/E8-16500.pdf

Supplement I to Part 226, Official Staff Interpretations, p. 85

Subpart A – General

Section 226.2—Definitions and Rules of Construction
2(a) Definitions.
* * * * *
2(a)(6) Business day.
* * * * *
2. Recission rule. A more precise rule for what is a business day (all calendar days except Sundays and the federal legal holidays listed in 5 U.S.C. 6103(a)) applies when the right of rescission, the receipt of disclosures for certain mortgage transactions under section 226.19(a)(1)(ii), or mortgages subject to section 226.32 are involved. (See also comment 31(c)(1)–1.) 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). The observed holiday (in the example, July 3) is a business day for purposes of rescission, the receipt of disclosures for certain mortgage transactions under section 226.19(a)(1)(ii), or the delivery of disclosures for certain high cost mortgages covered by section 226.32.



Reply by jba/fl on 1/3/12 10:41am
Msg #408100

Thanks for your great attention to detail! n/m

Reply by Moneyman/TX on 1/3/12 11:22am
Msg #408102

Thank you for the information, Harry n/m

Reply by HisHughness on 1/3/12 11:45am
Msg #408109

You're right about other calendars

***there appear to be several rescission calendars in circulation that are wrong again***

I like the Pennsylvania Association of Notaries version, but I've lost some confidence in it. As you noted, the PAN calendar claims 1/2/12 is not counted toward rescission. More disturbing, though, is that I called to point out the error, they acknowledged it, and yet they haven't corrected it.

Reply by Buddy Young on 1/3/12 12:30pm
Msg #408115

Re: Thanks Harry n/m

Reply by MW/VA on 1/3/12 12:45pm
Msg #408119

Thanks, Harry. Thank you especially for clearing

up the confusion about the holidays. :-)

Reply by MikeC/TX on 1/3/12 5:32pm
Msg #408146

I haven't seen anything yet to show that the rules have changed - "observed" holidays are only for federal employees (who would otherwise get gypped out of a paid holiday if it fell on a Sunday), but have nothing to do with "business days" as far as Ref Z is concerned.

There were a couple of discussions about this just before Christmas, and I'm sure there will be more discussions as we approach Veteran's Day this year, but your interpretation is the right one.


 
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