ROR Calculation When Branch Is Open On Sunday

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Question:

Some branches of a bank are open on Sundays. I have two questions concerning business days and Reg Z: 1. Would the bank be considered "substantially open for business" if they take loan applications, disburse loans, take deposits, and make withdrawals at only certain branches on Sunday? (not all the branches are open on Sunday) The back office/operations staff does not work that day. If so, when calculating the 3 business days for early TILs, would they count Sunday as a business day for loans closed at all branches or just the ones opened on Sundays? 2. The definition of business day in Reg Z states that Sunday is never a business day for right of rescission. If this same bank closes rescindable loans on Sundays, when do we begin counting the three days?

Answer:

Answer by Andy Zavoina:

For some regs this relies on the back office being open. In the case of RoR, you should refer to the definition of "business day" in "Z" which excludes Sundays and the legal public holidays specified in 5 U.S.C. 6103(a).

Answer:

Answer by Richard Insley:

This question is irrelevant for ROR. You don't count the day the loan is made, only the ensuing business days.

Answer:

Answer by John Burnett:

Regardless of when a loan is "closed," Sunday is never counted for purposes of the 3 business day ROR period. Never.

And when counting business days, you always start with midnight of the first business day following the event triggering the ROR period. That's one BD down. Then go to midnight of two more BDs and your rescission period is ended. Then make yourself satisfied the persons with a ROR haven't exercised the ROR before proceeding.

First published on BankersOnline.com 08/18/03