Question

A perfected security interest automatically expires when the collateral is sold.

True

False

The most common method of perfecting a security interest is perfection by adverse possession.

True

False

Answer 1

1.) A perfected security interest doesn't automatically expires on the selling of collateral security.

Hence, the Answer is "False"

Because this a perfect security interest which the creditor have the right to take possession of the security on the faliure of the payment due to creditor by the debtor and this perfected security interest is made under the law that the debtor who pledges the collateral security can't sell the security unless he has taken the consent of the creditors and otherwise the property in question can not be sold and if get sold then the perfected security is not expired.

2nd ques -

Answer is "False"

The adverse possesion is not the method of the perfecting the security because the adverse possesion also known as squatters right a party who does not have legal right to the immovable piece of land and it's elements is different in every jurisdiction and the method of perfecting the security is right is perfected by registering in the legal authority which automatically made it legally enforceable in the court law.