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

By temporarily waiving certain penalties, the agency aims to give institutions time to adapt their systems while maintaining compliance expectations once the grace period ends. —Aliss Higham, MSNBC Newsweek, 8 Oct. 2025

The deal with Pfizer includes a three-year grace period from those tariffs, and its CEO said the company would invest $70 billion to reshore manufacturing of drugs sold domestically. —Sydney Lupkin, NPR, 30 Sep. 2025

An official with the California Highway Patrol said the CHP will offer drivers a grace period before issuing tickets. —Rob Nikolewski, San Diego Union-Tribune, 29 Sep. 2025

The new law will take effect after a two-year grace period. —Reuters, NBC news, 26 Sep. 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