grandfathering

grandfathering definition - business

grandfathering

When rules are changed, allowing actions taken before a certain date to remain subject to the old rules. For example, Congress may change the law by stipulating that certain types of municipal bonds no longer pay tax-free interest, while at the same time grandfathering the municipal bonds issued before the date on which the new law is to take effect.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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