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

Additionally, offering a reasonable grace period can allow employees time to adapt to the new policy. —Johnny C. Taylor Jr., USA TODAY, 17 Dec. 2024

But, according to Hils, the regulator may take action against facilities that fill new orders, as well as facilities filling old orders after a 60-day grace period. —Kate Knibbs, WIRED, 9 Oct. 2024

There’s no grace period for the beginning of the Sherrone Moore era. —Austin Meek, The Athletic, 24 Aug. 2024

Here’s why some credit card APRs aren’t going down For some FSAs, a grace period may provide up to two and a half months after the end of the plan year — or until March 15, 2025 — to spend down the funds, Rouleau said. —Lorie Konish, CNBC, 16 Dec. 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