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

After each zone is officially created, the city is providing a grace period to move their vehicles before abatement proceeds. —Devan Patel, The Mercury News, 21 Jan. 2025

For Dan Hurley’s Huskies, the grace period has expired. —Joe Arruda, Hartford Courant, 21 Jan. 2025

Another motion by Hernandez would have established a 60-day grace period for parking tickets and vehicle impounds while the fire emergency remains. —Tony Barboza, Los Angeles Times, 15 Jan. 2025

As impacted homeowners work through recovery efforts, several major financial institutions will offer a 90-day grace period on mortgage payments, California Gov. Gavin Newsom announced Saturday. —Dalia Faheid, CNN, 18 Jan. 2025

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