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63 can mail a notice of rescission on the observed holiday; the notice is not required to be postmarked or delivered on that day. Consumers are not likely to be confused because the rescission notice must indicate the specific date that the rescission period expires …." (67 FR 16981 [2002]; emphasis added) APPLICATION TODAY e wording and structure of today's Commentary concerning precise days can often cause confusion in its application. Even courts have difficulties in applying it (e.g., see Mayoral v. WMC Mortg., LLC., No. 08 C 7292, 2009 WL 3272697, at *2 - 3 [N.D. Ill. Oct. 6, 2009]). Particularly, legal holidays which fall on a Sunday and their observation on the following Monday can cause consternation, since this particular scenario is not addressed in the Commentary—which can lead to interpretations that, perhaps, such scenarios should be treated differently than when legal holidays occur on a Saturday, since such scenarios were specifically addressed (e.g., see Ibid.). However, the FRB's analyses over the decades are clear on several points: • ere are only two different definitions of "business day" under Regulation Z ("us, it has adopted this two-tiered definition"), with one defining "business day" as the date on which a creditor is open for business, while the other defines it as every day except Sundays and specific holidays listed under the U.S. Code. • While clumsily written, the FRB intended their revised commentary concerning precise days to mean that only the day of the holiday should be considered a nonbusiness day and not the observed holiday. • e omission of an example for when a legal holiday falls on a Sunday was not meant to create a new rule. Rather, the FRB appears to have concluded that their lone example for Saturday was sufficient to illustrate the fundamentals of precise days (regardless of whether they fall on a Saturday or Sunday): that an observed holiday is to be treated as a business day. Subsequent guidance from the FRB has provided further clarification on this point. Within their ird Quarter 2010 Issue of "Consumer Compliance Outlook," the FRB provides many details and examples of how the business day definitions are to be applied. Among the many useful examples was the following: "For another illustration involving a legal holiday, consider July 4. is year July 4 fell on a Sunday, but the holiday was celebrated on Monday, July 5. July 5 would not count as a business day under the general definition but would count as a business day under the precise definition, even though the bank was closed that day." (p. 16) JUNETEENTH At this time, no amendments have been made (let alone proposed) to have Juneteenth explicitly listed in Regulation Z. is has led to some concern as to whether or not the absence of Juneteenth means that it should be considered a business day until so added. However, in the CFPB's interpretive rule due to the enactment of the "Juneteenth National Independence Day Act," the CFPB implied that Juneteenth should be considered a holiday: "e legislation that made Juneteenth a Federal holiday took effect immediately. erefore, June 19 became a Federal holiday on June 17, 2021. By virtue of the cross-reference to 5 U.S.C. 6103(a) in § 1026.2(a)(6), the days that are considered Federal holidays under the specific business day definition in Regulation Z also changed on June 17, 2021." (86 FR 44267 [2021]) is correlates with the structure of the Business Day Rule. Note that before providing the list of holidays, the law uses the idiom "such as," which is defined by Merriam-Webster as a phrase "used to introduce an example or series of examples." As such, the list of holidays should not be construed as being limiting, but rather exemplary; whether a holiday is considered a nonbusiness day or not depends entirely on whether or not it is listed as a federal holiday under the U.S. Code, which Juneteenth now is. While the Commentary could be construed as being limiting, since it does not use an idiom or other grammatical structure to indicate that the listed holidays are examples, it is important to remember that the Commentary must be construed toward fulfilling its legislative intent and deference is to be given to an administrative entity's views of the regulation, so long as such opinions are not demonstrably irrational (see Ford Motor Credit Co. v. Milhollin, 444 U.S. 555, 565 [1980]). e administrative text—which clearly provides a list of holidays as examples—coupled with the CFPB's interpretive rule indicating that the addition of the holiday to the U.S. Code is sufficient to consider the holiday a precise day via cross-reference, provides enough context to reasonably conclude that the list of holidays within the Commentary is also a list of examples. Altogether, Juneteenth is considered just as much a precise day as Independence Day, New Year's, Veteran's Day, and Christmas. Because it falls on a Sunday this year and observed on a Monday, per many decades of guidance from the FRB, that Sunday would be considered a precise day, while Monday would not. Be sure to keep this new holiday in mind when providing disclosures to borrowers in order to keep in line with time and delivery requirements. Timothy A. Raty has more than a decade of experience in regulatory compliance and technology. He is currently a Senior Analyst with Mortgage Cadence, an Accenture Company, which has been partnering with lenders since 1999, offering the industry's only true one-stop shop for mortgage technology solutions. Raty received an A.A. in paralegal studies from National Paralegal College in 2010 and a teaching diploma from the North American Montessori Center in 2005. He has authored numerous articles.

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