July 5th and the Right of Rescission
Posted by Anthony Demangone
Next Monday, I bet that many of you will be seated near a barbecue grill, chatting with friends about how you survived July 1 and all the new regulatory requirements that went into effect. That's because most American businesses observe July 4th on a Monday when the legal holiday falls on a Sunday.
But what about the Regulation Z's "right of rescission?" Â The definition of "business day" for the purposes of the "right of rescission" indicates that Sundays and certain holidays, including July 4th, do not count. Â Is July 5th a business day for the purposes of the right of rescission? Â Yep. Â Here's what the Staff Commentary to Regulation Z says:
âÂÂâ¦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 â¦â (Emphasis added.) ç .2(a)(6) of the Official Staff Interpretations of Regulation Z.