Blanket Lien

A blanket lien is different than other possessory liens because it gives the creditor the ability to seize all assets that the debtor owns in order to pay off a loan.

A blanket lien allows a borrower to use more than one asset as collateral for a loan. While this may immediately seem advantageous for a borrower in need of financial assistance, if they default on their loan the creditor is given control of all of the assets. Furthermore, the creditor has full discretion over the assets and how they want to receive payment from those assets.