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grandfather clause definition - finance
A provision that allows a practice or procedure to continue, even though it is now prohibited. For example, if new energy legislation is passed that mandates power plants meet certain emissions standards, existing plants may be excused from these standards by means of a grandfather clause.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

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