5.2 Rescission Date Calculation (Business Days & Holidays)

The Counting Rule: Start the Next Business Day

Rescission date calculation is one of the most heavily tested topics on the NSA exam. The rule has three parts:

1. The day of consummation (signing) is NOT counted. Counting begins the next day.
2. Count business days only. For rescission, a business day is every day except Sundays and the 11 federal legal holidays. Saturdays COUNT as business days for rescission — this is a common exam trap.
3. The right expires at midnight of the THIRD business day after consummation (or after the latest triggering event if disclosures or the Notice are delivered later).

The 11 Federal Legal Holidays

Regulation Z ties the rescission business-day test to the legal public holidays listed at 5 U.S.C. § 6103(a). For rescission counting, these 11 days are excluded regardless of the day of the week on which they fall:

When July 4 falls on a Saturday, the federal government observes the holiday on the preceding Friday, but the regulation's business-day test uses the actual holiday date (July 4). When a holiday falls on a Sunday, it is typically observed on Monday — and that observed Monday may also be excluded under the lender's calendar. To avoid errors, use a published rescission calendar rather than counting by hand under time pressure.

Worked Example 1: Friday Signing (No Holiday)

Borrowers sign (consummate) on Friday.

Rescission expires at midnight Tuesday.

Worked Example 2: Wednesday Signing Before Juneteenth

Borrowers sign on Wednesday, June 17, 2026. June 19 (Juneteenth) is a Friday and a federal holiday.

Rescission expires at midnight Monday, June 22, 2026. Note how Juneteenth on Friday pushes Day 3 from Saturday to the following Monday.

Worked Example 3: Tuesday Signing Before Thanksgiving

Borrowers sign on Tuesday, November 24, 2026. Thanksgiving (Thursday, November 26) is a federal holiday.

Rescission expires at midnight Saturday, November 28, 2026.

Exercising the Right: Mailed = Given

To rescind, the borrower must give written notice — by mail, telegram, or other means of written communication (12 CFR § 1026.23(a)(2)). The notice is considered given when it is MAILED, when it is filed for telegraphic transmission, or, by other means, when it is delivered to the creditor's designated place of business. What matters is the moment the borrower sends it, before midnight of the third business day — not the moment the lender receives it.

This is the point most candidates get wrong: a borrower who mails the letter on the third business day has validly rescinded even though the lender does not receive it for several days. As an NSA you do not determine whether rescission was validly exercised — that is the lender's call — but you should understand the rule so you can point the borrower to the Notice's instructions and the mailing address printed on it.

Common Counting Mistakes to Avoid

• Counting the signing day as Day 1. It is Day 0 — never count it.
• Excluding Saturdays. Saturdays are business days for rescission.
• Forgetting Juneteenth (June 19) — the newest federal holiday and an easy one to miss.
• Treating the lender's business hours as the cutoff. The deadline is midnight, not close of business.
• Starting the clock from the CD delivery date when signing occurred later. The clock starts from the latest triggering event.
• Counting the holiday itself just because it falls on a weekend. If July 4 is on a Saturday, July 4 is still the holiday; the observed Friday may or may not be excluded depending on the lender's calendar — verify.

A Quick Mental Check

Before leaving the signing, ask yourself: what is the signing date, what are the next three business days (skipping Sundays and holidays, including Saturdays), and what date is midnight of the third one? That date must match the date printed on every Right to Cancel copy the borrower receives.