TABLE 1: COLLATERAL VALUES FOR FHLBANK LENDING (2017 COMBINED FINANCIAL REPORT Table 45-Effective Lending Values by Type of Collateral for all Borrowers at December 31, 2017 Collateral Type Effective Lending Average Values Applied to Effective Collateral Lending Value Blanket Lien
Single-family mortgage loans (1) 39%-94% 78% Multifamily mortgage loans 25%-78% 71% Other U.S.
The SBA lender will always secure a first-position blanket lien
against all assets of the practice being purchased.
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.
Any sale, lease, or re-lease of a portion or all of the property; any negotiation or renegotiation of debt secured by a blanket lien
; as well as the hiring of any manager, or the negotiation of any management contract, requires unanimous approval.
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
. A co-owner's unanimous approval is required for several actions.
Before 1989, for example, to make small lending easier, bankers would simply take a "blanket lien
" on a small borrower's assets and base the credit decision on cash flow and other business factors.
It is also a way for the sale of all personal property if the bank is holding a "blanket lien
" in all of the debtor/borrower's assets.
* 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.e., a mortgage against the entire property).
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.