60
Most of the timing requirements for disclosures under the Truth
in Lending Act (15 U.S.C.A. §§ 1601 et seq.) and its implementing
regulations known as "Regulation Z" (particularly 12 C.F.R. Pt. 1026) use
"business days" to measure time. However, "business day" is not statutorily
defined (e.g., see Supra § 1602), thus the various regulatory agencies, like
the Federal Reserve Board (FRB) and the Consumer Financial Protection
Bureau (CFPB), tasked with enforcing TILA have had to develop their
own definitions of "business day" to adequately enforce the law.
Under the so-called "Business Day Rule"
outlined in 12 C.F.R. § 1026.2(a)(6), the
CFPB defines "business day" in two ways. e
first, commonly known as the "creditor" or
"general" business day definition, defines such
a day as one in "which the creditor's offices are
open to the public for carrying on substantially
all of its business functions" and applies to
nearly all parts of Regulation Z.
A separate definition is used for a few,
specific requirements, most notably certain
"right to rescind" rules under Ibid. §§ 1026.15
& 1026.23. is alternative definition is
commonly known as the "precise" or "specific"
business day definition. Currently, a precise day
is defined as "all calendar days except Sundays
and the legal public holidays specified in 5
U.S.C. 6103(a)[.]"
Last year, the "Juneteenth National
Independence Day Act" (135 Stat. 287 [2021])
was signed into law and added Juneteenth as a
holiday under 5 U.S.C.A. § 6103(a). Due not
only to this, but also the fact that Juneteenth
occurs on the same calendar day each year
and will occur on a Sunday this year (and
will be observed by the Federal government
on Monday, June 20), a brief history of the
precise day and how it is to be treated when it
is observed on a different day will be especially
Feature By: Timothy A. Raty
ADDING
JUNETEENTH TO
THE CALENDAR
A history of precise business days and observed holidays.
