days of grace

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1 The interval between the establishment of a loan and the first due date for repayment.

2 Time given to defaulters to satisfy their obligations (see grace and notice provision).

3 The extra time allowed for payment of a bill of exchange or insurance premium after the actual due date. With bills of exchange the usual custom is to allow 3 days of grace (not including Sundays and Bank Holidays) and 14 days for insurance policies.

4 The period elapsing between a security offer and the establishment of a sinking fund or purchase fund.

Subjects: Financial Institutions and Services.

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