National Bank extended a line of credit to Elle’s Boutique, a high-end fashion store, secured by its present and after-acquired inventory. National Bank perfected its security interest by a UCC-1 filing a few days later. After a couple of years of financial troubles, Elle’s Boutique filed for bankruptcy. 90 days prior to the petition date, Elle’s Boutique had $400,000 worth of inventory on hand and owed National Bank $600,000. As of the petition date, Elle’s Boutique had $450,000 worth of inventory, and only a $400,000 debt remaining.

Elle’s trustee is now seeking to set aside National Bank’s SI in the remaining inventory as a preference. Which statement is correct?

1. Elle’s trustee cannot avoid National Bank's security interest to any extent, because the security interest in the inventory does not secure an antecedent debt.

2.  Elle’s trustee can invalidate National Bank's security interest in $50,000 of the inventory on hand on the petition date (the amount by which National Bank was oversecured).

3. Elle’s trustee cannot avoid National Bank's security interest to any extent because Elle was not insolvent at the time National Bank perfected its security interest in the inventory.

4.  Elle’s trustee can invalidate National Bank's security interest in $250,000 of the inventory on hand on the petition date.