blanket security lien

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A blanket security lien is a type of security interest over the assets of an entire entity rather than an individual asset. While blanket liens can technically be placed on the assets of an individual person, they are more commonly seen on the assets of a business. 

A party wishing to borrow money will often have to offer up a lien on one of their assets as collateral. In the event that the party fails to repay the loaned money, the lien allows the creditor to seize and possess the attached asset. In the case of a blanket lien, the debtor offers up their assets in general as collateral. 

Assets commonly seized in accordance with a blanket security lien include accounts receivable, work vehicles, and inventory. Once seized, these assets are then sold to satisfy the outstanding debt. 

Blanket Liens are authorized by UCC-1 forms. For an example of a typical form/terms, see this sample from Texas. 

[Last updated in June of 2022 by the Wex Definitions Team]