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Policy: X.E.1x2

Issued: July 17, 1989

Owner: University Comptroller

Latest Review: March 8, 2000



For Current Policies:
Policy Table of Contents


1.0 Purpose

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

2.0 Policy [Top]

2.1 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.

2.2 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.

2.3 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."

2.4 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.

2.5 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.

3.0 Definitions [Top]

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

4.0 References [Top]

5.0 Approvals and Revisions [Top]

       Previous version in effect from 7/17/89 to 3/8/00 available in policy archive.

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© 2000 by the Rector and Visitors of the University of Virginia