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

There would be a brief grace period for those parking to quickly grab an item from a store or restaurant and return to their cars. —Dillon Thomas, CBS News, 5 Jan. 2026

The state of New York's insurance regulators focus on making payment accommodations, such as grace periods or alternative payment arrangements, when individuals can provide proof of their hardship. —Lyssanoel Frater, USA Today, 2 Jan. 2026

Typically when companies miss interest payments on their bonds there’s a five-day grace period to make the payment, with a few more weeks after that to find some some solution with bondholders. —Evan Clark, Footwear News, 29 Dec. 2025

You’re entitled to a refund during this grace period. —Howard Cohen, Miami Herald, 25 Dec. 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