What is a Blanket Lien?

A blanket lien is a type of lien that gives a lender the legal claim of right in all assets or a group of assets of the debtor. Generally, a blanket liens attempts secure a loan by attaching assets of the debtor as collateral.

Prior to default, a blanket lien is in the form of a security interest. In the event of a debtor default, the lien gives the lender the right to seize and sell the debtors assets. A blanket lien is otherwise called a UCC-1 lien.