Federal Holidays (Right of Rescission)
Generally, when consumers have a right to rescind a home-secured loan, they may exercise the right until midnight of the third business day following consummation or the delivery of certain disclosures, whichever occurs last. For purposes of rescission, “business day” means all calendar days except Sundays and the federal legal holidays listed in 5 U.S.C. 6103(a) which are the following:
- New Year’s day, January 1st.
- Martin Luther King, Jr.'s Birthday, third Monday in January.
- Washington’s Birthday, third Monday in February.
- Memorial Day, last Monday in May.
- Independence Day, July 4th.
- Labor Day, first Monday in September.
- Columbus Day, second Monday in October.
- Veterans Day, November 11th.
- Thanksgiving Day, fourth Thursday in November.
- Christmas Day, December 25th.
Only the date specified in the statute is considered a legal holiday for purposes of rescission. 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; Veteran’s Day, November 11; and Christmas Day, December 25. When one of these holidays falls on a Saturday, July 4 for example, federal offices and other entities may observe the holiday on the preceding Friday, July 3. The observed holiday, July 3, is a business day for purposes of rescission or the delivery of disclosures for certain high-cost mortgages covered by Reg. Z § 1026.32.