Banking and Business Monthly – June 2021

On June 17, 2021, Congress established June 19 as a federal holiday. Juneteenth National Freedom Day will be recognized with other federal holidays under the United States Code moving forward. The question is, was it considered a business day on Saturday, June 19, 2021? Since the bill was signed so close to the date, businesses and financial institutions were put in a tough spot trying to decide.

In Illinois, Governor J.B Pritzker signed a bill on June 17 to make Juneteenth a state holiday in Illinois, beginning next year but announced state offices would be closed Friday. In December, Cook County, Illinois made Juneteenth one of 14 government holidays.

The Federal Reserve Board, the Office of the Comptroller of the Currency, and the SEC were closed on Friday, June 18, 2021. The SEC’s filing system also was shut down Friday. Some banks had limited hours in honor of Juneteenth, while others decided to wait until next year. U.S. financial markets and the USPS remained open due to the short notice. The Federal Deposit Insurance Corporation encouraged financial institutions to inform customers of their plans as soon as possible.

Under 765 ILCS 67/5, “business day” means any calendar day except Saturday, Sunday, or a state or federal holiday. Under TILA-RESPA integrated disclosures (TRID), “business day” is defined as "all calendar days except Sundays and legal public holidays" as specified in 5 U.S.C. § 6103(a).

The Truth in Lending Act (TILA) and Regulation Z provide two different definitions of “business day” – “general business days” and “specific business days.” A “general business day” is defined to mean a day on which the creditor’s offices are open to the public for carrying on substantially all of its business functions. 12 C.F.R. § 1026.2(a)(6). A “specific business day” is defined to mean all calendar days except Sundays and the legal public holidays specified in 5 U.S.C. § 6103(a), which include 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, Christmas Day and now “Juneteenth.” 12 C.F.R. § 1026.2(a)(6).

Institutions may use the business function test. 12 C.F.R. § Pt. 1026, Supp. I, Part 1. For example, suppose it is indicated that a creditor is open for substantially all of its business functions, including the availability of personnel to make loan disbursements, open new accounts, and handle credit transaction inquiries. In that case, it is a business day. On the other hand, suppose it is indicated that the creditor is not open for substantially all its business functions. For example, a retailer is merely accepting credit cards for purchases, or a bank is having its customer-service windows available only for limited purposes such as deposits and withdrawals. In that case, it is not a business day.

A more precise rule for a business day applies when the right of rescission, the receipt of disclosures for a particular dwelling purchase or a real estate mortgage transaction, or the receipt of disclosures for a private education loan is involved. When a holiday falls on a Saturday, federal offices and other institutions usually observe the holiday on the preceding Friday. In cases where the more precise rule applies, the observed holiday is a business day. 12 C.F.R. § Pt. 1026, Supp. I, Part 1. Since the holiday was on a Saturday this year, it was not a "business day" for purposes of calculating either the 7-business day waiting period after delivery of the Loan Estimate or the 3-business-day waiting period after delivery of the Closing Disclosure. However, Friday, June 18, was considered a “business day.”

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