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Loan Records (Incoming Loans)
(SPECTRUM Procedure: Loans in)

This document was written, and licensed for publication by the Collections Trust.

Museums need to manage and document the process of borrowing objects, for which they are responsible for a specific period of time and for a specified purpose, normally display, but also including research, education or photography.

Why do it?

Documenting Loans in is a SPECTRUM Primary Procedure, and it is required to be in place for Museum Accreditation (see below). It will enable:

  • The museum to account for all items currently in its care, even if those items are not part of its permanent collection;
  • Ensure that borrowed items are cared for to agreed standards.

The Minimum Standard for recording Loans in, states that the procedure must:

  • Establish the purpose of the loan;
  • Enable at least the same care of the borrowed object as if it were part of the permanent collections;
  • Include written agreements signed by both borrower and lender before the loan commences, as appropriate to the collection;
  • Ensure that the terms and conditions of loan are adhered to;
  • Ensure that all loans are for fixed periods;
  • Ensure a written record of the loan is retained;
  • Enable effective control of the loan process;
  • Enable the provision of information about the borrower and the loan as requested by the lender;
  • Provide insurance or indemnity cover for the loan period;
  • Ensure that up-to-date information about the location of borrowed objects is maintained;
  • Ensure that up-to-date information about the security of borrowed objects is maintained;
  • Ensure that up-to-date information about the physical well-being of borrowed objects is maintained, including the environment and condition of the objects.

What policy decisions are needed?
(see Loans in - Policy requirements)

You must decide, and record in a written policy. It is good practice for the organisation to state:

  • The reasons why objects may be borrowed;
  • The conditions it will observe;
  • The minimum and maximum length of a loan period;
  • The way in which loans are authorised;
  • How the organisation will establish the lender's title to objects (e.g. to avoid exhibiting finds known to have been illegally taken from archaeological sites);
  • Steps for dealing with loaned objects for which the original lender cannot be contacted.

Long-term/permanent/indefinite loans
(see Loans in - Step 6)

A loan must be for a finite period and must not be 'permanent', although there may be an option for renewal at the end of a loan period. If permanent loans are already part of an organisation's system, every effort should be made to trace the owners and convert the agreement into a fixed-term loan or gift.

All Loans in must be agreed between the owner and the receiving museum for a specified reason and period. They should be numbered with a Loans in number, and listed separately in a dedicated Loans register.

Before the loan begins
(see Loans in - Steps 3-10)

Loans can be initiated either by the receiving organisation or by the lender. Maintain an up-to-date record of the status of the loan throughout the loan process. All correspondence and additional information about the loan should be maintained on a related file, accessible at least by lender name and loan number. Record references to these documents.

Record and maintain preliminary information about objects which may be borrowed throughout the research process.

Loan requests must be in writing and should be submitted as far in advance of the loan as possible. This must be in compliance with the period of notice required by the lender. It should take into account the time needed to meet Government Indemnity Scheme guidelines, Customs, or any other needed preparations, if relevant.

Requests should include the following at least:

  • Date(s) of proposed loan;
  • Venue(s) for proposed loan;
  • Context and purpose of proposed loan (including the argument for object inclusion within scope of exhibition if appropriate);
  • Lender's name and address;
  • Contact name and details;
  • Object number(s) of requested object(s);
  • Brief descriptions of requested object(s);
  • A statement of insurance or indemnity arrangements which would be made.

The borrower may wish to compile an information sheet for lenders. This should include a description of the venue(s) and specify the responsibilities of the borrower during the loan period, and can be sent out with the loan request. This does not supersede any terms set by the lender, it merely demonstrates the borrower's duty in safeguarding the loan.

The non-availability of requested objects may require requests to be changed and object information updated.

If the lender agrees to consider the loan, provide further information on the venue(s) as required. Completion of a formal facilities report may be requested.

Loans from private sources may require separate or additional guidance for individuals who have not loaned to the organisation before, stating responsibilities of both parties, and asking the lender to confirm title and provenance of loaned object if necessary.

Record references to correspondence and documents.

When the lender has agreed in principle to the loan, and as the list of objects to be borrowed stabilises, request further details of the objects and record them on the related file. The record for each object should include:

  • The lender's object number and description;
  • The name and address of owner;
  • Its valuation;
  • Its condition;
  • Its display recommendations;
  • Its environmental recommendations;
  • Its handling recommendations;
  • Its dimensions;
  • Photographs of it, for research;
  • Any additional descriptive and historical information as required;
  • Exhibition number (if applicable).

It may be necessary to repeat the negotiation steps depending on conditions such as the availability of objects, security and environmental conditions, etc.

Finalise the conditions of loan and record all decisions on the related file. Include the following:

  • Object related information;
  • Insurance and indemnity requirements;
  • Costs and responsibilities;
  • Terms of reproduction and intellectual rights;
  • Packing, transport, courier and other shipping requirements;
  • Arrangements for scientific research loans;
  • Additional terms and conditions as agreed with the lender;
  • Renewal application date;
  • Contact details.

It is not advisable to assume responsibility for the transfer of loans between the lender and a third party. As current borrower, object movement to a third party may need to be facilitated at the end of the loan period. Such agreements should remain directly between the lender and third party, unless acting as the organiser of a touring exhibition with multiple venues.

Record references to correspondence and documents.

When the loan is confirmed, appropriate agreement(s) must be signed by lender and borrower. The agreement should refer to all conditions for the loan.

When borrowing from another organisation, the situation is likely to arise where the lender has a standard agreement for Loans out and the borrower has one for Loans in. The use of more than one loan agreement is not recommended, the onus is on the borrower to accept that of the lender as owner of the object, providing all necessary points are covered. If necessary draft a one-off agreement that covers all relevant points to the satisfaction of both parties.

Prepare for and schedule receipt of the object(s), including the briefing of all necessary persons and the implementation of any requirements specified by the lender. Identify a location for the object on its arrival.

Provide the lender with documentary evidence of insurance or indemnity and Customs clearance once the exact period of loan has been agreed, including transit. Also obtain the appropriate licences, e.g. for working objects.

Receipt of the loan
(see SPECTRUM Procedure: Loans in - Steps 13-17)

Complete entry documentation on arrival.

Unpack object and make a condition report. Include a photograph where possible (practically and legally).

Take any remedial action as required, obtaining the owner's agreement as required by the loan agreement.

If a separate loan number is allocated, record this on the entry form. Otherwise assign a unique number, normally the Entry number, to each object or associated group of objects. Record this number assigned in the loan documentation. It is recommended that a removable tag carrying the unique number is attached to the object to assist tracking and identification.

Record the location of all objects and maintain that information. A gallery plan may be useful in identifying and locating objects.

Send a receipt to the lender to confirm safe arrival of the object and retain a copy.

Monitoring the loan
(see Loans in - Step 18)

Monitor the loan and its condition and environment, providing access to the lender or their agent when requested to do so.

Provide condition reports as required. Report any changed circumstances even if objects on loan are not directly affected (e.g. attempted theft of other loaned objects). If the object has been damaged the lender must be informed immediately and provided with a full report carried out by the borrowing organisation.

Extending the loan
(see Loans in - Step 19)

In the case of a loan which is to be renewed, apply as required for an extension of the loan period. Revise the insurance or indemnity cover and status of the loan as required under the terms of the loan agreement and the terms of insurance or indemnity.

Return and closure
(see Loans in - Steps 20-26)

Arrange for the return of the loan, and confirm packing, transport and receipt arrangements as agreed previously. If the loan dates are being changed, consult the lender as soon as possible before an early return of the loan.

Complete a final condition report on the object, taking photographs if required (and legally possible).

Return the object to the lenders.

Obtain and retain notification from shippers that the object has been returned. Record a reference to this.

Obtain and retain written confirmation from lenders that the object has been received in a satisfactory state. Follow up any action that may be required, e.g. insurance or indemnity claims.

Confirm that all charges have been paid.

Maintain the documentation as a permanent record and audit trail of the loan.

If the owner has died since the object was received, contact the executor if known. If current legal ownership of the object is in any doubt, and/or authorised signatures are not obtainable, seek professional legal advice.

It may be necessary to take advice from the organisation's normal source of legal advice as to the steps which should be taken if the original owner of a deposited or loaned item cannot be contacted, with a view to either:

  • Acquiring the object;

or

  • Disposing of the object within the organisation's disposal policy if the object is not desired by the organisation.

However, any further action should only be undertaken after a period of due diligence, where reasonable efforts to trace the original owner have failed. Legal advice should be sought with regards to the Torts (interference with Goods) Act 1977 and the Local Government (Miscellaneous Provisions) Act 1982 before proceeding on either course of action.

If a loaned object is subsequently acquired by the borrowing organisation, process it as an acquisition.

Sources of help and advice

This fact sheet is adapted from: SPECTRUM: The UK Museum Documentation Standard. Cambridge: MDA, 2005.

See also:

Harrison, Margaret & McKenna, Gordon. Documentation: a practical guide. Cambridge: Collections Trust, 2008.

The Collections Trust provides impartial resources for all aspects of collections information management. For more information please contact: Collections Link - 0845 838 4000.

SPECTRUM

SPECTRUM is a standard created by and for the museum profession to promote good practice in museum documentation. It covers all those areas of museum activity that produce information, and is the result of contributions from documentation practitioners in museums throughout the UK. It is available free, for non-commercial use, at: http://www.collectionstrust.org.uk/spectrum

SPECTRUM defines 21 Procedures, which describe the process of documenting and managing objects in a museum.

Section 4 of the Accreditation Standard uses SPECTRUM as the basis for its documentation requirement. The 'minimum records' referred to can be achieved by following the 8 SPECTRUM Primary Procedures:

  • Object entry
  • Loans in
  • Acquisition
  • Location and movement control
  • Cataloguing
  • Object exit
  • Loans out
  • Retrospective documentation

Museum Accreditation Support - Link to support pack

Version 1.2 - Last revision July 2008.