grace period

(redirected from Grace Periods)
Also found in: Dictionary, Medical, Legal.

Grace period

The time period stipulated in most loan contracts and insurance policies during which a late payment will not result in default or cancellation.

Grace Period

1. The time after the due date for a loan payment during which one may make the payment without any late fees or penalties. The length of the grace period depends on the loan terms, but is usually around 15 days.

2. The time after rent is due, during which one may pay rent without a late fee. The grace period for rent is usually five days.

3. In bonds, the time between the issue of the bond and the first coupon payment. This grace period usually applies to long-term bonds, where interest payments do not begin to occur for a few years after issue.

grace period

The period during which the issuer of a bond is not required to make interest payments. For example, a bond issued this year might only start paying interest five years from now. Bonds with grace periods are sometimes issued during a corporate restructuring.

Grace period.

A grace period is the number of days between the date a credit card issuer calculates your new balance and the date your payment is due.

In most cases, if you have paid the previous balance in full and on time, and you haven't taken any cash withdrawals, no finance charges are added to the amount of your purchases.

If you generally pay the entire balance due on time, you may want to choose a card with a longer rather than a shorter grace period, assuming the other terms are comparable. That gives you more time to be sure your payments arrive on time.

However, a minority of credit arrangements include a minimum finance charge, even if you do pay on time. Other lenders go back two billing cycles and will add finance charges if you have not paid the full amount due each time.

The grace period on a student loan allows you to defer repayment so that the first installment isn't due until six or nine months after you graduate or are no longer enrolled at least half time. The timing depends on the type of loan.

You also have a grace period in which to pay the premium on an insurance policy before the policy is cancelled. It's usually one month after the due date.

grace period

The allotted time during which a payment can be made without penalty and without entry upon credit records as delinquent or in default.

Grace Period

A number of days, usually 10 to 15, that a borrower is allowed to be late in making the mortgage payment without suffering any penalty.

References in periodicals archive ?
However, the survey of 318 employers found that only 34 percent of respondents plan to extend the grace period to allow participants in both the health care and dependent care flexible spending accounts (FSA) to carry over unused money.
That grace period is usually around 15 days - time enough for most people to get a check in the mail, including delivery time by the post office.
We hope this extended grace period, which now is essentially 90 days, can give the people who were affected by the earthquake more time to get their affairs in order without having to worry about lapsing their valuable life insurance coverage," said Mary Kippen, assistant vice president-customer service and communications.
net's grace period for regaining compliance with the Nasdaq SmallCap Market's minimum bid-price rule, or that otherwise has an adverse affect on DSL.
For the most recent college graduates, students who received their diplomas in May, the grace period (the six-month period between graduation and the beginning of loan repayment) on their student loans will end in November, and by the holidays their first payments will be due.
If during these SmallCap grace periods, the closing bid price of Next Level's common stock is $1.
United believes that taking advantage of these grace periods is a fiscally prudent step in light of its current financial situation.
By transferring to the Nasdaq SmallCap Market, Tellium may be afforded extended grace periods in which to satisfy the minimum bid price requirement, potentially until August 4, 2003, provided it meets other applicable listing criteria.
Furthermore, Procom may be eligible for transfer back to the Nasdaq National Market if, by the end of all grace periods, its bid price maintains the $1 per share requirement for 30 consecutive trading days and the company has maintained compliance with all other applicable listing requirements.
announced that it would exercise the 30-day grace periods on its upcoming bond interest payments, the first of which was due that day, and would commence restructuring discussions with its debt holders.
However, if the Company fails to meet all listing requirements, including the $1 minimum bid price, at the completion of all applicable grace periods, its Class A common stock could be subject to Nasdaq delisting pending an appeals process.