GRACE, DAYS OF. A period allowed for the payment of a negotiable instrument, as a bill of exchange or promissory note, in addition to the time named in the paper itself. As the title indicates, this additional period was formerly a matter of indulgence or favor on the part of the holder. It has long been recognized by the courts as a matter of right. Chief Justice Marshall de clared, nearly a century ago, that "the allowance of days of grace is a usage which pervades the whole commercial world. It is now universally understood to enter into every bill or note of a mercantile character, and to form so completely a part of the contract that the bill does not be come due, in fact or in law, on the day men tioned on its face, but on the last day of grace." Paper payable on demand has always formed an exception to this rule; and days of grace have been abolished in several European countries and in a number of our States. The number of
days varies in different countries from three to thirty. In Great Britain, and generally in this country, the number is three. Accordingly if a bill or note is dated February 1st, and is pay able three months after date, it matures May 4th: that, and not May 1st, is the proper day on which to demand payment. and on which it is dishon ored by non-payment. If the last day of grace falls on Sunday or a great holiday or a bank holi day, the paper falls due on the second day of grace. The number of days to which a particular bill or note is entitled depends on the law of the place where it is payable, not of that where it is drawn, made, or indorsed. Consult the authori ties referred to under NEGOTIABLE INSTRUMENT.