**INACTIVE POLICY**

For Current Policies:
Policy Table of Contents

 

                      UNIVERSITY OF VIRGINIA
           FINANCIAL AND ADMINISTRATIVE POLICIES MANUAL


TITLE:  UNIVERSITY COLLECTIONS                     POLICY:  X.E.1x  

        
A University collection is defined as any group of objects or works
controlled by a University department.

This policy relates to the lending of a University collection to an
outside borrower.

General Considerations

A department should decide what objects will be loaned.  The value,
rarity and condition may influence the decision to lend.  If an
object is on loan to the department, then the owner's permission
should be obtained before another loan is made.  A donor's
restrictions may prevent the lending of those items.

Another consideration is to whom loans will be made.  Frequently
loans are made only to other educational or non-profit
organizations.  In this way the loan activity is not interpreted to
be a commercial venture.

Authority to approve loans resides with the department chair,
although this authority may be delegated.

Care of Objects

The lending department should ensure that the objects on loan will
receive proper care.  An inspection of the facilities may be
necessary to evaluate the physical conditions and security at the
borrowing institution.  A loan agreement should specifically state
the care that the loaned objects are to receive.

Requirements for transportation, unpacking and repacking should be
indicated to the borrower, and the loan agreement should specify
who is responsible for these accounts.

The duration of the loan should be stated in the loan agreement. 
It is the department's responsibility to periodically check that
the items are being used for the stated purpose and that insurance
valuations are current. Indefinite loan periods are not
recommended.  When the loan period is completed, the lending
department should reclaim its property promptly.

Insurance

The borrower must provide insurance satisfactory to the department
or reimburse the department for the cost of its own coverage.

If the borrower is to provide insurance, the department should
request a copy of the policy to confirm that adequate coverage has
been obtained. Cancellation or changes in coverage must be conveyed
to the department immediately.  The loan agreement should state
that failure of the borrower to have in effect the agreed upon
insurance will not release the borrower from liability for loss or
damage.

Insurance valuations can be difficult to determine.  Some objects
may be irreplaceable or have no readily ascertainable market value. 
If during negotiations, the department and borrower cannot agree on
insurance valuations, it may not be prudent to enter into a loan.

For additional information on insurance valuations and coverage,
contact the Office of Risk Management.

See also Policy VII.H.1, "Insurance
Coverage."

Income

The University does not lend collections as a means of generating
revenue. However, an organization may desire to compensate the
University for the use of a collection.  In such situations, the
department receiving the request should contact the University
Comptroller before establishing an amount.

Agreement

The agreement related to a loan under this policy is a contract. 
Therefore, the execution of the agreement must be handled in
accordance with University policies governing contracts.  See also
Policy VII.R.1, "Contracts," for
additional information.


ISSUED BY:                                                 07/17/89

University Comptroller         10.5.1.1