The 3-Business-Day Right of Rescission, Counted Correctly

Under the US Truth in Lending Act, certain home-secured loans come with a three-business-day window during which the borrower can cancel without penalty. Miscount that window and the loan can stay rescindable far longer than anyone intended.

"Business day" here has a specific meaning

For TILA rescission, a business day is every calendar day except Sundays and the federal legal public holidays. That means Saturdays count — a detail that surprises people used to a Monday-to-Friday definition. The clock starts the day after the latest of: loan closing, delivery of the truth-in-lending disclosures, or delivery of the two notices of the right to rescind.

A worked example

If all conditions are met on a Thursday, the three business days are Friday, Saturday, and Monday (Sunday is excluded), so the right to rescind expires at midnight Monday. Drop a federal holiday into that stretch and the deadline slides another day.

Don't count this one by hand

Because the Saturday-counts rule cuts against habit, this is exactly the deadline worth computing rather than eyeballing. The Right of Rescission (3-Business-Day) calculator applies the TILA-specific definition — Sundays and federal holidays out, Saturdays in — and returns the cancellation deadline.

This is general information, not legal advice. Confirm specifics with counsel.