A refinance is consummated on Thursday 5 March and the notice of the right to rescind is delivered the same day. The lender closes on Saturdays. No federal holiday falls in the period. Assuming this transaction is subject to rescission and all material disclosures also arrive on 5 March, when does the three-business-day rescission period expire?
Correct Answer
A) The period ends Monday 9 March: Saturday counts under this definition
A. The period expires at midnight Monday, March 9. All three triggering events occur Thursday: consummation, material disclosures and rescission notice. Counting begins afterward. Friday is day one, Saturday day two, and Monday day three. Sunday is excluded; the lender’s office hours do not remove Saturday. Scope and exceptions: The stem establishes rescission coverage and timely receipt of all required documents. Different receipt dates can change the starting point; not every refinance carries this right. Source: 1026.23(a)(3); official interpretation 23(a)(3)-1 — https://www.consumerfinance.gov/rules-policy/regulations/1026/23/ 1026.2(a)(6); official interpretation 2(a)(6)-2 — https://www.consumerfinance.gov/rules-policy/regulations/1026/2/
Why This Is the Correct Answer
A. The period expires at midnight Monday, March 9. All three triggering events occur Thursday: consummation, material disclosures and rescission notice. Counting begins afterward. Friday is day one, Saturday day two, and Monday day three. Sunday is excluded; the lender’s office hours do not remove Saturday. Scope and exceptions: The stem establishes rescission coverage and timely receipt of all required documents. Different receipt dates can change the starting point; not every refinance carries this right.
Why the Other Options Are Wrong
Option B: The period ends Wednesday 11 March, allowing 3 days the office is open
The office-opening calendar is not the rescission definition.
Option C: The period ends Tuesday 10 March, since the lender is shut on Saturday
A closed office does not make Saturday an excluded day.
Option D: The period ends Sunday 8 March, counting 3 straight calendar days
Sunday is not counted under this rule.
Exam Tip
Find the latest triggering event, then apply the rescission-specific day definition.
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