This case presents the question of whether a payment by a third party to a creditor on behalf of a debtor is a voidable preferential transfer when the debtor grants security interests to the third party in exchange for the payment. The District Court held that defendant-appellant Peoples Banking Company ("Peoples") received from James Ross Hartley ("the debtor") a preferential transfer of $500,000, voidable under 11 U.S.C. § 547(b) (1982), and granted plaintiff-appellee Suzanne Cotner Mandross, the trustee in bankruptcy ("Trustee"), partial summary judgment. The principal issue, in which others are subsumed, is whether the debtor owned the $500,000 paid to Peoples on June 10, 1981. We conclude that the debtor's interest in the $500,000 was only the value of the security interests he transferred to the third party in exchange for the third party's payment to Peoples. Accordingly, we reverse the holding of the District Court and remand for a determination of the value of the security interests.