Can someone help interpret's Townplace Suites Milpitas rate rules for cancellation?

Cancellation Policy
1 NTS RM & TX CXL PENALTY -AS FIRST NIGHT PAYMENT
CANCELLATION PERMITTED
UP TO 1DAYS BEFORE ARRIVAL

I assume if I call 1 day ahead, I can cancel my reservation without penalty. If I call the night before, that should be sufficient right?

Long time lurker here...decided to rack up some nights with the take 2 promo.