In early 2013, Carter borrowed $1,000 from the Bank; it was a signature loan (i.e., no collateral). On Sept. 25, 2013, Carter made a $500 payment to the bank (assume that this payment is not in the ordinary course), but on Oct. 4 he borrowed $300 more from the bank, giving it a security interest in his sword collection. Then bank never filed a financing statement, and Carter filed a bankruptcy petition on Nov. 8, 2013.

How much if anything can his bankruptcy trustee recover from the bank?

The trustee can recover the $500 that debtor paid on Sept 25 because the payment was not during the ordinary course of business and was made within 90 days before the debtor filed for bankruptcy.

Am I right?

Does 547(c)(4) apply?