Under what condition may the secured party buy collateral at a private sale?

The ability of a secured party to buy collateral at a private sale is governed by the principle of commercial reasonableness. When collateral is customarily sold in recognized markets, this indicates that there is an established framework and set of standards for conducting the sale, which helps ensure that the sale is fair and transparent. Since recognized markets have norms and practices that facilitate fair pricing and access, the secured party can confidently engage in purchasing the collateral without raising concerns about impropriety or unfairness in the transaction.

In contrast, the other options do not capture the essential condition necessary for a secured party to buy collateral at a private sale. Merely acquiring the collateral legally does not address whether the sale is conducted justly; an appraisal may reflect value but is not a requisite for the sale; and buying at any time regardless of market conditions could lead to issues of fairness and value that violate the principles underpinning secured transactions. Thus, the involvement of recognized markets serves as a safeguard for all parties involved.