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Loan Records (Outgoing Loans)
(SPECTRUM Procedure: Loans out)
This document was written, and licensed for publication by the Collections Trust.
Museums need to manage and document the process of loaning objects to other institutions for a specific period of time and for a specified purpose, normally display, but including research, education or photography.
Why do it?
Documenting Loans out 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 which are part of its permanent collections, even if they are currently elsewhere;
- The museum to ensure that items on loan to other museums are cared for to agreed standards.
The Minimum Standard for recording Loans out states that the procedure must:
- Ensure that all loan requests are assessed according to the organisation's policy;
- Ensure that there are written agreements signed by both borrower and lender before the loan commences;
- Ensure that the loan is for a finite period;
- Ensure that the organisation retains a record of all loans, including details of the borrower, the venues, the loan period and the purpose of the loan;
- Enable effective control of the loan process;
- Ensure that the borrower confirms their intent and ability to provide an acceptable level of care, security and safekeeping for the object and to conform to the conditions of loan specified;
- Ensure that the loaned objects are covered by insurance or indemnity as appropriate for the duration of the loan period.
What policy decisions are needed?
(see Loans out - Policy requirements)
You must decide, and record in a written policy. It is good practice for the organisation to state:
- Categories of objects which may and may not normally be loaned out;
- Categories of borrower which will not normally be eligible to receive loans;
- Reasons for a loan which will not be considered;
- Conditions for loans out addressing the following issues, the:
- Timetable requirements e.g. minimum period of notice required;
- Number of objects able to be loaned;
- Maximum length of loan permitted;
- Potential costs that the borrower will be expected to meet;
- Maximum number of venues permitted in a single tour;
- Public access to object;
- Provision of valuations;
- Insurance/indemnity requirements;
- Handling conditions;
- Restrictions on preparation, conservation and analysis of the loaned material;
- Packing requirements;
- Shipping/transport/customs requirements;
- Courier requirements;
- Display, use and storage conditions;
- Security of venue;
- Environmental conditions;
- Smoking, eating and drinking around the object;
- Borrower's contingency planning arrangements;
- Protection of rights (e.g. copyright and reproduction right);
- Acknowledgements and credit line requirements in displays and publications;
- Terms of monitoring object condition and environment;
- Arrangements for renewal, transfer or cessation of the loan;
- Catalogues required from borrower.
- In addition, organisations with natural science collections making research loans will address the issues of:
- Ownership of specimens and preparations made from the loan;
- The recording of new information and retention of existing labels.
Long-term/permanent/indefinite loans
In the past 'long-term', 'permanent' or 'indefinite' loans were often made by museums to other museums. The borrowing museum often added these loans to their accession registers. This is no longer considered good practice: long-term loans can become a liability and if loans are not renewed every few years it is easy to lose contact with the owner. All Loans out must be agreed between the owner and the receiving museum for a specified reason and period. Long loans should be avoided in favour of short loan periods, made for a specified time and purpose. Short-term loans can be renewed, if both parties agree.
Deciding whether to loan
(see Loans out - Steps 3-6)
On receiving a loan request, this must be in writing, check that the potential borrower has provided the following information:
- The details of the required object(s), including the object number and brief description;
- The name, address and contact details of borrower;
- The name and status of individual making request;
- The purpose of loan and, if intended for exhibition, the scope of the exhibition and details of all venues;
- The proposed dates of the loan;
- A brief statement of the indemnity or insurance provisions which will be made.
Record the information in a loan record. The loan record may be a manual or computer file, cross-referenced to the inventory information for any objects requested.
Acknowledge the request, stating whether or not the object is available for loan and if the organisation is prepared to consider the loan. Criteria which may affect the decision to consider a loan are:
- The availability of the object(s) requested;
- The condition of the object
- A risk assessment to the object as well as to the borrower and/or users (e.g. potential hazards of radioactive, explosive or flammable material);
- Ethical considerations such as condition, risk or sensitivity;
- The acceptability of the purpose of loan;
- That objects on loan to the organisation should only be loaned to a third party with the written agreement of the owner. The agreement should specify any terms and conditions of loan and a copy should be retained;
- Whether the organisation has the right to lend.
If the object is to be considered for loan, it should be reserved for that purpose.
Record a reference to the acknowledgement.
If the object is being considered for loan, send the prospective borrower any general conditions of loan which apply, together with a request for further information about the loan. This may include a request to complete a facilities report.
Depending on the circumstances, and on obtaining further information, the following should be assessed before deciding whether or not to lend.
The suitability of the proposed borrower, taking into account:
- A reference to previous loans to a particular borrower or venue;
- Information gained from a site visit to the proposed venue;
- Consulting the relevant Regional Agency or the Museums, Libraries and Archives Council Security Adviser;
- Assurance that the object will be adequately covered in the event of damage or loss.
Other aspects include:
- Necessary schedule to meet the loan;
- Costs (e.g. of conservation work);
- Specific requirements relating to the object(s) requested (e.g. couriers required);
- Security considerations;
- Environmental considerations;
- Use to be made of collections (e.g. working objects).
Who makes the decision?
(see Loans out - Step 7)
Notify the prospective borrower of the decision to lend. The decision must be made by an authorised individual or group based on the considerations above. Refusals to lend objects should be accompanied by an explanation, referring to the organisation's loans policy where appropriate.
Record references to any documents created during this part of the procedure.
Agreeing to loan
(see Loans out - Steps 8-10)
Following a decision in principle to lend, provide the prospective borrower with the following information for each object:
- The name and address of owner;
- Its valuation;
- Its condition;
- Its display requirements;
- Its environmental requirements;
- Its handling recommendations;
- Its dimensions;
- Photographs for research or publicity (if legally possible);
- Any additional descriptive and historical information as required;
- The estimated costs that the borrower will be expected to meet.
Finalise the conditions of loan and record all decisions on the related file. Include the following:
- The insurance and indemnity requirements;
- The terms of reproduction;
- The packing requirements, transport, courier and other shipping requirements;
- Any additional terms and conditions as agreed with the lender, including costs and the method of acknowledgement for labels, etc.
It may be necessary to repeat the above depending on the availability of objects, security and environmental conditions, etc.
When the loan is confirmed, an appropriate agreement must be signed by lender and borrower. The agreement should refer to all conditions for the loan as agreed above, and may depend on agreed requirements being met, e.g. a satisfactory security report.
When lending to another organisation, the situation is likely to arise where the borrower has a standard agreement for Loans in and the lender has one for Loans out. The use of more than one loan agreement is not recommended. The onus is on the borrower to accept the standard agreement of the lender, providing all necessary points are covered. If necessary draft a one-off agreement that covers all relevant points to the satisfaction of both parties.
Record a reference to the agreement.
Before the loan begins
(see Loans out - Steps 11-16)
Construct any required display equipment.
Carry out and record a condition check.
Carry out any necessary conservation work and record.
Obtain if necessary, and retain, a photograph of each object being loaned out (if legally possible).
Make the appropriate packing and shipping arrangements, including appointing and briefing a courier and/or agents if appropriate. It is reasonable to share couriers with another organisation where appropriate, providing all couriers are briefed and issued with the necessary documentation.
Appropriate provision should be made for Customs with overseas loans, especially if unpacking for inspection will endanger the physical well-being of the object. Confirmation of holding of necessary Customs documents and export licenses should be made by all parties concerned.
With transport arrangements, care should be taken to ensure that the size, weight and nature of the packaging comply with the shippers' conditions. For instance, items carried in passenger accommodation on aircraft (i.e. with the courier) will be subject to limits on size of the package.
Confirm that a satisfactory report has been received from the Museums, Libraries and Archives Council Security Adviser, or qualified individual, and that all security conditions have been met. If the report is unsatisfactory, the potential borrower may be given an opportunity to comply fully with the security standards required for the loan before any final decision is taken to terminate the request.
Obtain evidence of insurance arrangements or compliance with Government Indemnity Scheme conditions in advance of despatching the object. Update records.
Despatch the object and update the location record. Obtain confirmation of the safe arrival of the object.
Update the location record.
Monitoring the loan
(see Loans out - Step 17)
Monitor loans by updating the following information according to the terms of agreement:
- Object condition (at least annually);
- Environmental and display conditions (at least annually);
- Insurance and indemnity policies (before renewal dates).
If the ownership of an object changes while on loan to a third party, terminate the current loan agreement at the time of transfer of title and facilitate the signing of a new agreement.
Renewing the loan
(see Loans out - Steps 18-19)
Although a loan must be for a finite period, at the end of the agreed period an application for renewal may be considered provided adequate notice is received.
Renewal of the loan is dependent on satisfactory monitoring and the written agreement of the lender and borrower. Obtain and retain a copy of any further agreement. Record a reference to the agreement.
Ending the loan
(see Loans out - Steps 20-25)
Confirm the arrangements for the return of the object, and plan its return to the organisation.
When the object returns, unpack it and carry out a recorded condition check, reporting any problems.
Follow up with remedial action as required.
Update insurance and indemnity records, if required.
Invoice the borrower for any remaining costs incurred during the preparation for loan according to the terms of the loan agreement.
Acknowledge safe receipt of the object by returning the borrower's receipt and confirm that all the final conditions of loan have been met (e.g. payment of costs, receipt of catalogues).
Record any information such as details of security incidents, courier reports, etc., which may be relevant in case of future requests from the borrower. Retain and make accessible the loan file for future reference.
Loan and exhibition information must be accessible via the object's cataloguing information, with references to any information held on a separate loan record.
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
Version 1.2 - Last revision July 2008
