grace period

noun

: a period of time beyond a due date during which a financial obligation may be met without penalty or cancellation

Examples of grace period in a Sentence

The terms of the loan allow for a ten-day grace period.

Recent Examples on the Web

When the grace period ended, these zombies were in even worse financial shape. —Robert Gorin, WWD, 30 Oct. 2024

Nevada law requires that all absentee ballots be mailed by Election Day, with a four-day grace period to allow for postal delays. —Kaelan Deese, Washington Examiner - Political News and Conservative Analysis About Congress, the President, and the Federal Government, 28 Oct. 2024

Mississippi may not be one of the toss up or decisive states, but if you got rid of these grace periods, several of the largest states, California, New York, Texas, all have these grace periods. —Taylor Wilson, USA TODAY, 14 Oct. 2024

What else is going on The grace period for student loan payments is over. —Los Angeles Times Staff, Los Angeles Times, 7 Oct. 2024

Word History

First Known Use

1907, in the meaning defined above

Legal Definition

grace period

noun

grace pe·​ri·​od

: a period of time beyond a scheduled date during which a required action (as payment of an obligation) may be taken without incurring the ordinarily resulting adverse consequences (as penalty or cancellation): as

a

: a period of 30 days or one month during which premiums on insurance policies may be paid without penalty

b

: a period of ten days during which certain security interests (as those in fixtures) must be perfected in order to have priority over conflicting security interests under Article 9 of the Uniform Commercial Code

called also days of grace