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From Webster's Revised Unabridged Dictionary (1913) :   [ web1913 ]

  Penalty \Pe"nal*ty\, n.; pl. Penalties. [F. p['e]nalit['e].
     See Penal.]
     1. Penal retribution; punishment for crime or offense; the
        suffering in person or property which is annexed by law or
        judicial decision to the commission of a crime, offense,
        or trespass.
  
              Death is the penalty imposed.         --Milton.
  
     2. The suffering, or the sum to be forfeited, to which a
        person subjects himself by covenant or agreement, in case
        of nonfulfillment of stipulations; forfeiture; fine.
  
              The penalty and forfeit of my bond.   --Shak.
  
     3. A handicap. [Sporting Cant]
  
     Note: The term penalty is in law mostly applied to a
           pecuniary punishment.
  
     Bill of pains and penalties. See under Bill.
  
     On, or Under, penalty of, on pain of; with exposure to
        the penalty of, in case of transgression.

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