In Re Scott

829 F.2d 865 In re Ben and Peg SCOTT, husband and wife, d/b/a Scotland Farm, Debtors. FRONTIER BANK, Plaintiff-Appellant, v. Ben SCOTT and Peg Scott, husband and wife, d/b/a Scotland Farm; Frank D. Howard and Gala S. Howard, husband and wife; Randy Hannon and Marion Hannon, husband and wife, Defendants-Appellees. No. 86-4156. United States Court of Appeals, Ninth Circuit. Argued and Submitted Aug. 5, 1987. Decided Oct. 6, 1987. Blair B. Burroughs and Thomas S. Linde, Mills & Cogan, Seattle, Wash., for plaintiff-appellant. John G. Cooper, Seattle, Wash., for defendants-appellees. Appeal from the United States District Court for the Western District of Washington. Before WRIGHT, CANBY and REINHARDT, Circuit Judges. REINHARDT, Circuit Judge: 1 Ben and Peg Scott entered into an installment sale contract in 1978 to purchase real estate from Frank and Gala Howard. Under the contract, title to the land would not pass from the Howards as vendors to the Scotts as vendees until payment of the last installment. In 1981, prior to full payment, the Scotts assigned their vendees' interest in the property to Frontier Bank as part of the security for a loan, which the bank promptly recorded.…