Fixed-rate bonds wherein the issuer holds the right, but not the obligation, to redeem the bond at par value or at a premium during its lifetime. Callable bonds often include a grace period where the issuer cannot call the bond, with conversion possible later if specific conditions are met.
A period of time provided in most loan contracts and insurance policies during which default or cancellation will not occur even though payment is past due.
A Notice of Default is a formal letter sent to a party in default to remind them of their breach of contract, potentially including a grace period to rectify the default and outlining any penalties for failing to cure the default.
A banking loan on which the interest is more than 90 days overdue. After this grace period has elapsed, the borrower becomes liable for late charges.
