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The claims of Cook and Addis are separate and unrelated, but both of them claim priority to monies produced by the sale of the Beltz land. Cook also claims priority to the proceeds of the sale of land identified as the Doebbling land. The sale of the Beltz and the Doebbling lands netted $44,490.31. Some 22 creditors have filed claims totaling $174,903.89 against the receivership. Addis claims priority on the Beltz proceeds, which presently amount to a net of $ 11,798.57 after fees and expenses to date are deducted. Cook claims priority over Addis and all other creditors, to the net proceeds of both land sales. On January 13, 1976, the D entered into a contract to sell the Beltz and Doebbling lands to Addis. On that same day, Addis paid $ 37,000 on the purchase price: $17,000 to the First State Bank of Ness City, Kansas, the amount of an overdue payment that Addis was to assume on an existing contract of purchase between D's mother and a third party; $20,000 to Ds' attorney as the down payment, which was disbursed to Ds and their attorney. Ds represented that they were in possession of the Beltz tract by virtue of an assignment of a contract of sale from D's mother, Mary Hazel Radke. Addis learned that Ds were in possession of the Beltz land as tenants of Dwaine's mother. Addis disaffirmed the D-Addis contract for misrepresentation on April 29, 1976. The Beltz land was assigned to the receiver on January 8, 1977, by Mary Hazel Radke and sold by the receiver. Mary was paid for her equity, and the only funds derived from the Beltz land sale came from Addis's $17,000 payment. Addis is a creditor and claims first priority on the sum of $11,798.57 remaining from the sale of the Beltz land. Addis claims priority as a defrauded purchaser whose payment, made in good faith before discovery of the misrepresentation, enhanced the net recovery by virtue of the $17,000 payment on the contract of purchase, and he is entitled to recover that sum from the proceeds of the sale. Without notice or consent, D converted and sold cattle and hogs belonging to Cook. After allowance to D for his interest in the livestock, it was agreed that D owed Cook $54,698. The Radke-Addis contract had not yet been executed. The parties were in the process of entering into the contract that is the subject of Addis's claim of priority. On December 19, 1975, Ds made a partial assignment of the Radke-Addis contract to Cook. The Radke-Addis contract and the assignment were drafted at the same time, but the D-Addis contract was not executed until January 13, 1976. The assignment was made to secure and indemnify the Assignee for loans and advances that he has made to Assignors prior to the terms of this agreement. Cook filed the assignment of record the day it was executed and paid a mortgage registration fee. Cook claims the assignment from Ds created an equitable mortgage lien, giving him priority as of the date the assignment was executed and recorded on December 19, 1975. Addis contends that the assignment does not evidence an intent by the parties to create a security interest in the land; that the only security interest granted was in the proceeds of a contract of sale to become due on completion of performance by Ds. The trial judge made no findings concerning the interests created among the parties by the assignment. The court ruled against Addis, and he appealed.

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