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(From the CUNA Comp Blog) – On June 17, 2021 President Biden signed the Juneteenth National Independence Day Act to establish June 19 as a legal public holiday. Juneteenth recognizes the date when news of emancipation finally reached people in the deepest parts of the former Confederacy in Galveston, Texas on June 19, 1865. The Juneteenth holiday was added to the holidays listed in 5 U.S.C. § 6103(a) as a fixed-date holiday.
For certain specified provisions, Regulation Z defines business day to mean: “[A]ll calendar days except Sundays and the legal public holidays specified in 5 U.S.C. 6103(a), such as New Year’s Day, the Birthday of Martin Luther King, Jr., Washington’s Birthday, Memorial Day, Independence Day, Labor Day, Columbus Day, Veterans Day, Thanksgiving Day, and Christmas Day.” This is referred to as the “specific business day” definition and includes Juneteenth, even though the regulation has not yet been updated to include it.
The specific business day definition applies to the Closing Disclosure (CD), which must be delivered to the member at least three business days prior to the date of consummation of the transaction, to the Right of Rescission for a refinance of a principal residence, which gives the member the right to rescind the transaction until midnight of the third business day following consummation, and to the deadline for delivering or mailing a Loan Estimate.
This year June 19 falls on a Monday. This means that this date is excluded as a business day when determining certain time periods under Regulation Z. For example, if your member receives the initial CD on Friday June 16, the earliest date that settlement could occur would be Wednesday June 21. If the initial CD is received on Monday, June 19, 2023, it cannot be considered received until the next business day.
Also, Monday, June 19 must be excluded as a business day in counting the seven-business day waiting period from when the initial Loan Estimate was provided to consummation.