On July 8, as posted in the Texas Register, the Finance Commission of Texas and the Texas Credit Union Commissioner (the “Commissions”) adopted new definitions for business day for Texas Home Equity loans. These changes were proposed earlier this year in March, as previously published here. The Commissions adopted the new definitions without changes to the earlier proposals. The new definitions apply to the Home Equity Lending Interpretations published by the Commissions.
As a reminder, the now final rule would update the interpretations at 7 TAC § 153.1(2) to expand the definition of business day to include three separate definitions:
- The first definition would apply for interpretations at 7 TAC §153.13, which relate to preclosing disclosures required under Texas Constitution Section 50(a)(6)(M)(ii). The new definition would state that a business day is a calendar day except for Sunday or a legal public holiday described by federal law. This is similar to the current definition of "business day" in §153.1(2) but adds Juneteenth National Independence Day as a listed holiday by simply referencing 5 U.S.C. 6103(a), which also allows for future amendments to the federal definition.
- Second, for interpretations at 7 TAC §153.45 covering disclosures for a refinance of a home equity Loan under Texas Constitution Section 50(f)), the proposal would amend §153.1(2) to state that a business day is a day on which the lender's offices are open to the public for carrying on substantially all of its business functions. This definition aligns with the federal “general” business day definition.
- The third definition would apply to provisions of 7 TAC §153.25, which relate to rights of rescission under Texas Constitution Section 50(a)(6)(Q)(viii). This new definition would refer to the business day definition under Regulation Z at 12 C.F.R. §1026.2(a)(6) that applies for purposes of rescission.
The new definitions are effective July 14, 2022.
