Blanket Lien

Blanket Lien

A lien on all or nearly all of a debtor's assets. In the event of default, the creditor has the right to take, and, at its discretion, sell off any or all of the assets covered under the blanket lien. Generally speaking, a blanket lien covers multiple assets that are specifically enumerated on the loan agreement, though, occasionally, a creditor can take other assets not listed as well. Some businesses use blanket liens to receive short-term financing.
Mentioned in ?
References in periodicals archive ?
particular when it takes the form of a blanket lien on a debtor's
Voting rights must meet certain requirements, including unanimous approval for (1) any sale or lease of the property, (2) any negotiation or renegotiation of indebtedness secured by a blanket lien, (3) the hiring of a manager, or (4) the negotiation of any management contract.
Revenue Procedure 2002-22 requires that any debts secured by a blanket lien must be satisfied when the property is sold, and the remaining proceeds must be distributed to the co-owners.
Co-owners must share in any debt secured by a blanket lien in proportion to their undivided interests.
5 Co-owners must approve the hiring of any manager, the sale or other disposition of the property, any leases of a portion or all of the property or the creation or modification of a blanket lien.
Unanimous vote of the co-owners is required for sale, lease, release of any of the property, negotiation or renegotiation of debt secured by blanket lien, hiring of a manager, or negotiation of management contract.
The co-owners must retain the right to approve the hiring of any manager, the sale or other disposition of the property, any leases, and the creation or modification of a blanket lien (i.
Under prior law, the courts held that a supplier's right of reclamation was junior in priority to the prior blanket lien of a bank.