By default, system administrators set the default security settings of all folders.

You can update the settings of each folder on the Security page of a folder:

• Replace Rights on subfolders—With a checkmark, if you change the rights of the folder, its subfolders and files also receive the same rights. Without a checkmark, if you change the rights of the folder, the rights of its subfolders and files do not change.
  
  If you add a folder or file to the folder with this setting, the folder or file does not update with the folder's rights. To receive security updates, the folder or file must be in the folder when the rights change.
   
• Replace Rights on existing files—With a checkmark, if you change the rights of the folder, its files also receive the same rights. Without a checkmark, if you change the rights of the folder, the rights of its files do not change.
  
  If you add a file to the folder with this setting, the file does not update with those rights. To receive security updates, the file must be in the folder when the rights change.