Frontier Bank v. Scott

REINHARDT, Circuit Judge:

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.1 By the end of 1981, the Scotts had defaulted on their obligations under the land sale contract and were delinquent in their…