Generally, in a refinance credit transaction in which a security interest is or will be retained or acquired in a consumer's principal dwelling, each consumer whose ownership interest is or will be subject to the security interest shall have the right to rescind the transaction. [Regulation Z §226.23] This right may be exercised by the consumer 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 legal public holidays (“federal holidays”) specified in 5 U.S.C. 6103(a). The federal holidays are as follows:
Only the date or day 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; Veterans Day, November 11; and Christmas Day, December 25. When one of these holidays (July 4, for example) falls on a Saturday, Federal offices and other entities might observe the holiday on the preceding Friday (July 3). However, for right of rescission purposes where the more precise business day rule applies, the observed holiday (in the example, July 3) is a business day and may be included in required Right of Rescission Period or the delivery of disclosures for certain high-cost mortgages covered by §226.32.