BLANKET LIEN Sample Clauses

A blanket lien is a legal provision that grants a lender a security interest in all or most of a borrower's assets as collateral for a loan. In practice, this means that if the borrower defaults, the lender can claim and potentially seize any or all of the borrower's assets, such as inventory, equipment, or accounts receivable, to recover the outstanding debt. This clause is commonly used in commercial lending to maximize the lender's protection and minimize risk by ensuring they have broad recourse to the borrower's assets in the event of non-payment.