What is a blanket security agreement and how is it different from security over specific assets?

A blanket security agreement, generally another way of describing a broad general security agreement, gives a lender a security interest over essentially all of a corporation's present and after-acquired personal property, rather than any one specific item. It's the standard approach for lenders providing a corporation's core operating financing, such as a line of credit or general term loan, where the lender wants its security to automatically capture whatever assets the business holds or acquires over time.

Security over specific assets, by contrast, is limited to a defined item or category — for example, one piece of equipment being financed, or a specific vehicle — and doesn't extend to the rest of the corporation's assets. This kind of narrower security is common with equipment or vendor financing, where the financing is tied directly to acquiring that particular asset, often as a purchase-money security interest. A corporation might have both types in place at once: a blanket security agreement with its main lender, and a narrower, specific security interest in favour of an equipment supplier over one piece of machinery, with the PPSA's priority rules sorting out how the two interact.