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grace period

noun

Definition of grace period

: 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

 The Grand Rapids-area Kent District Library went fine-free in June, while the Petoskey District Library has eliminated daily fees and extended its grace period. — Emma Keith, Detroit Free Press, "No more overdue fines for Detroit Public Library users," 3 Sep. 2019 There’s a two-week grace period for students to get their animals adjusted to campus life. — Kelly Meyerhofer, chicagotribune.com, "Wisconsin college offers pets as new on-campus living perk," 27 Aug. 2019 The council vote immediately revoked Sequel’s business license but allows a seven-day grace period. — Ashley Remkus | [email protected], al, "In wake of killing and escapes, Madison revokes Three Springs business license," 14 Aug. 2019 Lightfoot is proposing to cap late penalties on these tickets at $50, plus the 22% collections fee, and reinstate a 15-day grace period after stickers expire so motorists have more time to come into compliance. — Melissa Sanchez, ProPublica, "Chicago Mayor Proposes Reforms That Would Make Life Easier for Thousands of Black and Low-Income Drivers," 23 July 2019 In late July, legal papers were delivered to Epstein in jail that said Araoz planned to file a lawsuit when the one-year grace period begins. — Eric Levenson, CNN, "A unique one-year window for child sex abuse victims to get justice opens this week in New York," 12 Aug. 2019 Next year, two of the first three weeks include Southern Cal and Georgia -- not much of a grace period with so many key roles expected to be filled by new starters. — Michael Casagrande | [email protected], al, "Why Alabama’s 2020 schedule looks different from others," 7 Aug. 2019 But a divided state school board on Tuesday couldn’t agree on how much of a grace period. — Liz Bowie, baltimoresun.com, "No grace period granted for Maryland high school students facing new standardized tests to graduate," 23 July 2019 Fisheries say recommendations include new gear identification tags and equipment cleanup requirements before the season’s end, eliminating a two-week, postseason grace period. — USA TODAY, "Moon trees, moon film, monk honored: News from around our 50 states," 23 July 2019

These example sentences are selected automatically from various online news sources to reflect current usage of the word 'grace period.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.

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First Known Use of grace period

1907, in the meaning defined above

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More Definitions for grace period

grace period

noun

Financial Definition of grace period

What It Is

A grace period is a period of time, usually about 10 days, during which a past due amount can be paid with little or no penalty.

How It Works

Let's assume your credit card payment is due on December 15. You forget to make the payment. On December 20, you remember. By then, though, it's too late. Your bill is past due.

However, if your account has a grace period, you can make the payment and the creditor might not assess a late fee or other penalty.

Why It Matters

Past-due bills often incur late fees, higher interest rates, penalties and other charges. Worst of all, the creditor might report the late payment to the credit reporting agencies, leaving a black mark on your credit rating (and even lowering your credit rating). In some cases, a bill get so past due (say, 90 or 180 days), that the creditor considers the account in default and may charge off the balance. A grace period gives customers a chance to catch up quickly before it's too late. After that point, the lender might assign or sell the account to a collection agency, which will try to collect the balance.

Source: Investing Answers

grace period

noun

English Language Learners Definition of grace period

: an amount of extra time that someone is given to pay a bill, finish a project, etc.

See the full definition for grace period in the English Language Learners Dictionary

grace period

noun
grace pe·​ri·​od

Legal Definition of grace period

: 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

More from Merriam-Webster on grace period

Nglish: Translation of grace period for Spanish Speakers

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