Blanket UCC Filing
What does it mean
A blanket UCC filing, often referred to as a blanket lien or blanket security interest, is a legal document filed by a lender to assert a security interest in nearly all of a borrower's assets. Unlike a specific or itemized UCC filing that identifies particular collateral, a blanket filing covers a broad range of assets owned by the borrower, both present and future. This type of filing is common in commercial lending, providing the lender with a general claim over various types of collateral, such as inventory, accounts receivable, equipment, and sometimes even real estate.
Why does it matter
For bankers, understanding blanket UCC filings is crucial in assessing the extent of their security interest in a borrower's assets. It simplifies the process for lenders by avoiding the need to file separate UCC statements for each individual asset. However, they should also be aware that the effectiveness of a blanket filing may vary depending on jurisdiction and specific legal requirements.
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