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

Two years after the introduction, the grace period is over and in April this year, the standards began being implemented. —Akiko Katayama, Forbes, 25 Oct. 2024

The conference is in the midst of a two-year grace period to work to meet the requirements of an FBS conference. —Jill Martin, CNN, 12 Sep. 2024

But an extension, if approved, gives a six-month grace period to file, but not to pay, posing the risk of penalties. —Nicole Fallert, USA TODAY, 15 Apr. 2024

Interest-Free Period Credit cards usually come with an interest-free grace period, typically lasting 20 to 30 days after the statement date. —True Tamplin, Forbes, 16 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