penalty

penalty pen‧al‧ty [ˈpenlti] noun penalties _PLURALFORM [countable]

1. a punishment for breaking a law or rule:

penalty for

• There will be increased penalties for dumping oil at sea.

• The offence carries a maximumpenalty of two years' imprisonment.

• The stiff penalties (= severe penalties ) facing the eight racketeers are likely to act as a strong deterrent.

2. BANKING INSURANCE an amount of money someone has to pay if they do not keep to a legal agreement, especially an agreement with a bank or an insurance company:

penalty for

• There is a 10% penalty for withdrawing funds in the first three years.

surˈrender ˌpenalty also surˈrender ˌcharge INSURANCE

an amount of money someone owning an insurance policy has to pay if they stop the policy before it mature S (= becomes due for payment):

• Investors should always compare surrender penalties.

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penalty UK US /ˈpen^əlti/ noun [C] (plural penalties)

► FINANCE, LAW an amount of money that someone is forced to pay for failing to obey a rule, law, etc.: »

Taxpayers who do not send in their tax return by the deadline will pay a £100 penalty.

exit/early-withdrawal/fixed penalty »

Savers who try to cash in their bonds in the first five years will usually face fixed penalty charges.

impose/introduce a penalty »

Regulators prevented the broadband operator from imposing a penalty on customers defecting to other providers.

without penalty »

Withdrawals can be made without penalty as long as 50 days' notice is given.

»

face/incur a penalty

»

financial/hefty/stiff penalties

► LAW a punishment for failing to obey a rule or law: »

Second-degree murder carries a maximum penalty of life imprisonment.

abolish/oppose/seek the death penalty »

Several US states have considered bills that would abolish the death penalty.

→ See also SURRENDER PENALTY(Cf. ↑surrender penalty)