However, we now have intervening decisions of the Kansas Supreme Court which confirm the trial judge's prediction of Kansas law and his rejection of the waiver theory. North Central Kansas Production Credit Ass'n v. Washington Sales Company, Inc., 223 Kan. 689, 577 P.2d 35; North Central Kansas Production Credit Ass'n v. Boese, 2 Kan. App. 2d 231, 577 P.2d 824, aff'd by unpublished opinion, 588 P.2d 491 (Kansas Supreme Court, 1978; rehearing denied January 24, 1979). In the Washington Sales case, the auction company argued that there was an authorization of the cattle sales in question and a waiver of the creditor's security interest in the cattle.

3. SAME — Security Interest — Disposition of Collateral — Effect of Secured Party's Authorization to Sell Collateral. An express authorization by the secured party of the debtor to sell collateral and to receive the proceeds constitutes an express waiver of the security interest in the collateral sold. 4. SAME — Security Interest — Oral Consent by Secured Party to Sale of Collateral — Creditor Cannot Recover against Purchaser. The cases denying creditors recovery against purchasers where there has been an oral conditional consent to a sale of collateral are consistent with our holding in North Cent. Kan. Prod. Cred. Ass'n v. Washington Sales Co., 223 Kan. 689, 577 P.2d 35 (1978). 5. SUMMARY JUDGMENT — Application. Summary judgment is proper where the pleadings, depositions, answers to interrogatories and admissions on file, together with the affidavits, if any, show that there is no genuine issue as to any material fact and that the moving party is entitled to judgment as a matter of law.

The inclusion of proceeds in this agreement does not authorize debtor to sell, dispose of or otherwise use the collateral in any manner not specifically authorized by the agreement. In support of its position in this regard, Eastern relies on First National Bank v. Iowa Beef Processors, 626 F.2d 764 (1980), and North Central Kansas Production Credit Ass'n v. Washington Sales Co., 223 Kan. 689, 577 P.2d 35 (1978). Both cases are distinguishable from the case at bar.

       1. An express authorization by the secured party of the debtor to sell collateral and to receive the proceeds constitutes an express waiver of the security interest in the collateral sold. (Following North Cent. Kan. Prod. Cred. Ass'n v. Washington Sales Co., 223 Kan. 689, Syl. 3, 577 P.2d 35 (Case No. 48,585, decided April 1, 1978).)       2.

This rule has been applied consistently to determine the conversion liability of commission agents who sold cattle that were subject to UCC security interests. See, e.g., North Cent. Kan. Prod. Credit Ass'n v. Washington Sales Co., 223 Kan. 689, 697-98, 577 P.2d 35, 41-42 (1978); First Nat'l Bank Trust Co. v. Atchison County Auction Co., 10 Kan. App. 2d 382, 389, 699 P.2d 1032, 1038 (1985); accord Sanborn County Bank v. Magness Livestock Exch., 410 N.W.2d 565, 567 (S.D. 1987); see also Production Credit Ass'n v. Equity Coop Livestock Sales Ass'n, 82 Wis.2d 5, 261 N.W.2d 127, 128 (1978). Kansas courts have recognized only two exceptions to the general rule that a commission agent is liable in conversion, even if it has no knowledge of competing interests, if its principal was without authority to sell the collateral: the secured party either consented to the sale or misled the auctioneer about the debtor's authority to sell.

Courts have recognized the validity of certain of these conditions. See, e. g., North Central Kan. Prod. Credit Ass'n v. Washington Sales Co., 223 Kan. 689, 577 P.2d 35, 38 (1978) (authorization to sell if payment made jointly to seller and bank); Baker Prod. Credit Ass'n v. Long Creek Meat Co., 266 Or. 643, 513 P.2d 1129, 1134 (1973) (authorization to sell on condition buyer's drafts drawn on defendant bank were honored and paid); Farmers State Bank v. Edison Non-Stock Coop. Ass'n, 190 Neb. 789, 212 N.W.2d 625, 628 (1973) (consent to sell so long as no prior default has occurred). In all these cases the condition was either a condition precedent ascertainable by the purchaser prior to the sale or a matter within the control of the buyer.

". . . [A] factor or commission merchant who receives property from his principal, sells it under the latter's instructions and pays him the proceeds of the sale is guilty of a conversion if his principal had no title thereto or right to sell the property, and generally the factor may not escape liability to the true owner for the value of the property by asserting he acted in good faith and in ignorance of his principal's want of title. . . . The basis for the factor's liability if he assists in a conversion, even though innocent, is the fact he stands in the shoes of his principal. . . ."North Central Kan. Prod. Cred. Ass'n v. Washington Sales Co., 223 Kan. 689, 698, 577 P.2d 35 (1978), quoting Devore v. McClure Livestock Commission Co., Inc., 207 Kan. 499, 503, 485 P.2d 1013 (1971) (emphasis added); see also First Nat'l Bank Tr. Co. v. Atchison County Auction Co., 10 Kan. App. 2d 382, 389, 699 P.2d 1032 (1985) (restating and applying rule, holding auction company liable for conversion because its principal, plaintiff's debtor, was unauthorized to sell cattle). The intent required for conversion is satisfied by the use or disposition of goods belonging to another; knowledge or ignorance as to ownership of goals is irrelevant.

In the Clovis line of cases, the courts have characterized the secured party's conduct as express waiver or express consent and have held that the secured party's authorization of the sale releases the auction company or other purchaser from liability to the secured party. First National Bank and Trust Company of Oklahoma City v. Iowa Beef Processors, Inc., supra, 626 F.2d 764; Security National Bank v. Belleville Livestock Commission Co., Inc., supra, 619 F.2d at 846-48 (finding no implied waiver but finding express consent); Ottumwa Production Credit Association v. Keoco Auction Co., 347 N.W.2d 393 (Iowa 1984); Lisbon Bank and Trust Co. v. Murray, 206 N.W.2d 96, 99 (Iowa 1973); North Central Kansas Production Credit Association v. Washington Sales Co., 223 Kan. 689, 577 P.2d 35 (1978) (finding no implied waiver but finding express consent); Anon, Inc. v. Farmers Production Credit Association of Scottsburg, 446 N.E.2d 656 (Ind.App. 1983). A persuasive rationale for this result is that "the secured party is in a much better position to protect itself than the buyer because he knows of the debtor and the origin of the product.

No authorization exists where the debtor fails to satisfy the conditions of the creditor's conditional consent. North Cent. Kansas Prod. Credit Ass'n v. Washington Sales Co., Inc., 223 Kan. 689, 577 P.2d 35, 39 (1978). We see no reason to depart from this general rule where the condition was that the debtor remit the proceeds of sale to the creditor.

Subsection (e) is not applicable to the facts of this case. Kraft cites 7 U.S.C. § 1631 and three cases, Ensminger v. Burton, 805 S.W.2d 207 (Mo.App. 1991); First Nat'l Bank v. Lamoni Livestock Sales, 417 N.W.2d 443 (Iowa 1987); and North Central Kansas Prod. Credit Ass'n v. Washington Sales Co., 223 Kan. 689, 577 P.2d 35 (1978), in support of its point on appeal. This court, in its review of that authority, finds nothing helpful to Kraft. The cases cited by Kraft do not involve the application of 7 U.S.C. § 1631.