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

The three-day grace period will remain in effect through November’s local elections before changes go into effect Jan. 1, 2026. —Matthew Kelly, Kansas City Star, 26 Mar. 2025

Now, employers typically offer one of two options for employees: the ability to carry funds into the next year, or a grace period for reimbursement. —Andrea Riquier, USA TODAY, 12 Mar. 2025

During the 60-day grace period between Jan. 1 and March 1, the city handed out 1,500 warnings to people who violated the law. —Noah Lyons, San Diego Union-Tribune, 9 Mar. 2025

However, there is a sense that the grace period could be over for Cherington and Shelton if the Pirates have a losing season, which would be their 29th in the last 33 years. —John Perrotto, Forbes, 9 Mar. 2025

Word History

First Known Use

1907, in the meaning defined above

Rhymes for grace period

• myriad
• photoperiod

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