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

Related: Supreme Court to decide if challenge to Illinois' grace period for mail-in ballots can proceed Pennsylvania Democrats countered that the 2024 ruling by the state supreme court was consistent with the text of state election law and with the intent of the legislators who set the rules. —Maureen Groppe, USA Today, 7 June 2025

Once the world's largest financier, China has in recent years become its top debt collector as grace periods expire on billions of dollars in loans issued to the global south. —Micah McCartney, MSNBC Newsweek, 6 June 2025

At the time, some employees were told their health benefits would end after a 31-day grace period. —Andrea Hsu, NPR, 4 June 2025

The swing state of Pennsylvania, where the state Supreme Court permitted a three-day grace period, became a key target of those allegations. —Tyler Kirby, Kansas City Star, 16 May 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