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

Wisconsin’s seven-day arrest grace period is not being followed, at least not in the city of Milwaukee, the Journal Sentinel found in reviewing records and interviewing defendants. —John Diedrich, Journal Sentinel, 5 Dec. 2024

With that grace period now over, those who don’t pay their student loan bills are at risk of collection activity. —Annie Nova, CNBC, 1 Dec. 2024

Oregon State and Washington State are taking advantage of an NCAA grace period and operating as a two-team league this season and next. —Ralph D. Russo, The Athletic, 25 Nov. 2024

All may not be lost as your employer may allow up to $640 of unused funds to be rolled over during a grace period until March 15 to spend remaining balances. —James Brewer, Forbes, 26 Nov. 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