Blanket Lien

Definition

A security interest that gives a lender a claim against all of a borrower's assets, both current and future, rather than specific identified collateral. Blanket liens are commonly used in small business lending and working capital facilities where itemising individual assets would be impractical. While providing broad coverage, blanket liens rank according to the priority rules of the applicable jurisdiction (UCC in the US, PPSA in Canada, Companies Act in the UK).