The short answer
The consumer may rescind until midnight of the third business day following the later of consummation, delivery of the notice of right to cancel, or delivery of all material disclosures. For rescission, a business day is any calendar day except Sunday and legal public holidays under 5 U.S.C. 6103(a). Saturdays count.
Later of consummation, delivery of the notice of right to cancel, or delivery of all material disclosures
What starts the three-business-day clock?
Under 12 CFR 1026.23(a)(3) (closed-end) and 12 CFR 1026.15(a)(3) (open-end), the period runs from the later of:
- Consummation of the transaction
- Delivery of the notice of the right to rescind
- Delivery of all material disclosures
Enter that latest date in the calculator. Funding before the period expires, or before the creditor is reasonably satisfied that no rescission notice was received, violates 1026.23(c).
What business-day rules apply to Reg Z rescission?
12 CFR 1026.2(a)(6) uses a special definition for rescission (and certain TRID waiting periods): all calendar days except Sundays and the legal public holidays specified in 5 U.S.C. 6103(a). That is not the same as a Reg CC or Reg E business day. Saturdays count. This calculator also treats Juneteenth as excluded because it is a legal public holiday under 5 U.S.C. 6103(a), even though the regulation's illustrative list predates that amendment.
What does a worked Reg Z rescission example look like?
A cash-out refinance consummates and all notices are delivered on Friday, March 6, 2026:
- Business day 1: Saturday, March 7
- Sunday, March 8 is skipped
- Business day 2: Monday, March 9
- Business day 3: Tuesday, March 10. Rescission expires at midnight.
- Earliest disbursement: Wednesday, March 11, if no rescission notice was received.
Related tools
Pair this with the Reg B adverse-action notice calculator for lending disclosure clocks, or the Reg E error-resolution calculator for deposit-side dispute deadlines.
What conservative assumptions does this calculator make?
- You enter the latest of consummation, notice delivery, and material-disclosure delivery. The tool does not independently verify which event actually occurred last.
- Juneteenth is treated as a non-business day under 5 U.S.C. 6103(a).
- Earliest disbursement is shown as the next calendar day after midnight of day three; some creditors wait for the next business day as an operational control.
- The three-year extended rescission period for missing notices is described on the page but not calculated here.
Frequently asked questions
How long is the Regulation Z right of rescission?
Until midnight of the third business day following the later of consummation, delivery of the notice of right to cancel, or delivery of all material disclosures (12 CFR 1026.23(a)(3) for closed-end credit; 12 CFR 1026.15(a)(3) for open-end plans).
Does Saturday count as a business day for rescission?
Yes. For rescission, 12 CFR 1026.2(a)(6) defines business day as all calendar days except Sundays and the legal public holidays in 5 U.S.C. 6103(a). Saturdays count; Sundays and those holidays do not.
When can the creditor disburse funds?
Not until the rescission period has expired and the creditor is reasonably satisfied that the consumer has not rescinded (12 CFR 1026.23(c) / 1026.15(c)). In practice that means waiting until the calendar day after midnight of the third business day.
Which transactions are exempt from rescission?
Residential mortgage transactions (purchase-money), certain same-creditor refinancings or consolidations with no new advance beyond unpaid principal and closing costs, transactions where a state agency is the creditor, and a few other categories in 12 CFR 1026.23(f). Cash-out or new-advance portions of a refinance remain rescindable.
What if the notice or material disclosures were never delivered?
If the required notice or material disclosures are not delivered, the right to rescind generally expires three years after consummation, upon transfer of all of the consumer's interest in the property, or upon sale of the property, whichever occurs first (12 CFR 1026.23(a)(3)).
How quickly must the creditor unwind a rescinded transaction?
Within 20 calendar days after receipt of a notice of rescission, the creditor must return any money or property given in connection with the transaction and take any action necessary to reflect termination of the security interest (12 CFR 1026.23(d)(2)).
This calculator is provided for general informational purposes only. It is not legal advice, not a substitute for reading the regulation, and not a representation of how any particular regulator or examiner will interpret a specific set of facts. Where a rule is ambiguous, the tool applies the more conservative reading and says so. Confirm results against the current regulation text and your institution's counsel and disclosed policies before relying on them.
The rescission clock runs whether or not anyone opened a task.
Canarie turns Reg Z notice, funding-hold, and disclosure obligations into owned work with evidence capture, so closing files stay examiner-ready.