There seems to be confusion about holidays, observed holidays, and what gets counted for the purpose of complying with various regulatory requirements. The latest celebrated day that we have been getting questions about is Monday June 20th, the observed holiday of Juneteenth National Independence Day, our nation’s most recently added holiday to the federal schedule.
So, the question that keeps popping up is whether to count Monday June 20th as a business day for the purposes of rescission under Regulation Z. The short answer is “yes,” you count Monday June 20th as a business day for the purpose of rescission. To find out why, and how to determine which days, holidays and observed holidays to count, keep reading.
Adding to the confusion are the two definitions of “business day” in Regulation Z. For certain requirements the general definition applies, in which a business day means a day on which the creditor’s offices are open to the public for carrying on substantially all its business functions. However, for other requirements such as for purposes of rescission under §§ 1026.15 and 1026.23, the more precise definition of business day applies, and the term means all calendar days except Sundays and the legal public holidays.
Of the eleven legal public holidays, five are identified by a specific date: New Year’s Day (January 1), Juneteenth National Independence Day (June 19), Independence Day (July 4); Veterans Day (November 11), and Christmas Day (December 25). Because these five holidays always fall on the same date, they regularly fall on either a Saturday or Sunday.
Of the remaining six legal public holidays: Martin Luther King, Jr’s Birthday, Washington’s Birthday, Memorial Day, Labor Day, and Columbus Day always fall on Mondays. The remaining legal public holiday, Thanksgiving Day, always falls on Thursday.
When one of the specific-date holidays fall on a Saturday, for most Federal employees the preceding Friday will be observed as a holiday for pay and leave purposes. For example, when New Year’s Day (January 1) falls on a Saturday as it did in 2022, Federal offices and other entities observed the holiday on the preceding Friday (December 31, 2021). In cases where the more precise definition of business day applies, such as for the right of rescission, the observed holiday (in the example, December 31) is counted as a business day, even though federal offices may be closed on that day.
Likewise, if a holiday falls on a Sunday, for most Federal employees the following Monday will be observed as a holiday for pay and leave purposes. For example, when Juneteenth National Independence Day (June 19) falls on a Sunday this year, Federal offices and other entities will observe the holiday on the following Monday (June 20). In cases where the more precise definition of business day applies, such as for the right of rescission, the observed holiday (in this example, Monday, June 20) is counted a business day, even though federal offices may be closed on that day.