Is July 3, 2026 a federal holiday?
TIP: The United State will celebrate its 250th birthday this weekend. Since July 4th falls on a Saturday, the federal holiday and certain closures could affect credit union processes. Members should expect credit unions to be closed on Saturday, the 4th of July, but what if your credit union will observe the holiday on Friday, July 3?
Federal Reserve Banks
Federal Reserve Banks will be open on Friday, July 3, and processing payments. PaymentsFirst warned that “If your financial institution plans to close branches that day, ensure the appropriate staff and operational coverage are in place to support critical payment functions. A branch closure does not pause payment system activity, so reviewing your operational responsibilities in advance can help ensure uninterrupted payment processing and a smooth experience for both your institution and your customers.”
The Federal Reserve also posted these Independence Day holiday instructions. For example, the 7th district of the Federal Reserve Bank, which includes 46 counties in southern and eastern Wisconsin, provided:
Due to the upcoming holiday, you may need to change the day that you normally order currency and coin. Cash orders that would normally be picked up from the Federal Reserve Bank by your carrier will need to be placed no later than 12:00 p.m. two days before the holiday; this will ensure that we process your order in a timely manner. Please contact your armored carrier to determine how delivery will be affected by the holiday and adjust your order dates accordingly. If you have any questions, please contact your servicing Fed directly.
In addition, U.S. financial markets, including the New York Stock Exchange, Nasdaq and bond markets, will be closed on Friday, July 3. The U.S. Postal Service (USPS) will deliver mail as usual on Friday, and post offices will remain open but they will be closed on Saturday for the 4th.
Right of Rescission
For purposes of the right of rescission under Reg. Z, is July 3, 2026, considered a business day? Reg. Z defines a “business day” as all calendar days except Sundays and the federal legal public holidays. See ii Release No. B036. So, for certain holidays, including Independence Day, Reg. Z treats only the specific date listed in the rule (July 4) as a legal public holiday. The definition of business day is not affected by whether or not the credit union is actually open, or whether the holiday is “observed” on another day. Even if the credit union is closed on July 3, that observed date is still considered a business day for rescission purposes. The CFPB’s official interpretation of §1026.2(a)(6) puts it plainly: “When one of these holidays (July 4, for example) falls on a Saturday, Federal offices and other entities might observe the holiday on the preceding Friday (July 3). In cases where the more precise rule applies, the observed holiday (in the example, July 3) is a business day.” For example, if the loan closes on Thursday, July 2, the end of the rescission period is midnight on Tuesday, July 7.
Closing Disclosure
Note that this same definition of “business day” applies for purposes of providing the Closing Disclosure under the TILA-RESPA Integrated Disclosures (TRID) rule. Since Saturday, July 4, 2026, is the federal holiday; this date must not be counted as a business day when counting the “three business day” waiting period between receiving the initial Closing Disclosure and loan consummation.
Loan Estimate
For purposes of providing the initial Loan Estimate, Reg. Z says that a business day is a day on which the creditor’s offices are open to the public for carrying out substantially all of its business functions. The credit union is responsible for ensuring that it delivers or places in the mail the Loan Estimate no later than the third business day after receiving the consumer’s application and not later than the seventh business day before consummation of the transaction. If the credit union is closed on Friday, July 3, it would not count as a business day under the general “open for business” rules when providing the initial Loan Estimate. However, the rule also says that the Loan Estimate must be delivered or placed in the mail no later than the seventh business day before consummation of the transaction. For this definition of business day, Saturday, July 4, 2026, is not counted as a business day in counting the seven-business day waiting period from when the initial Loan Estimate was provided prior to consummation.
Compliance Roundtable – September 16 (In-Person)
Join members of The League’s compliance team as they lead a discussion on the latest changes in regulations and need-to-know information to keep your credit union in compliance. You can find more information or register on our website.