Loans

As long as the museum has a complete, clear and accurate documentary record of any object being borrowed or loaned there should be no problem in organising loans. All details of care for the object must be complete and the document signed by both parties or their legal representatives. The successful administration of loans relies on adherence to guidelines provided in the museum’s interpretation and collection policies.

Borrowing objects from other places can bring an extra dynamic to a museum, which may:

supplement the museum’s own collection and convey a stronger message in an exhibition
promote the network on which all collecting organisations depend for support and development
promote both the lending and borrowing museums.

Guidelines to be considered

The museum should accept on loan only those objects specifically required for exhibition. An end date should be specified and ideally the museum should not agree to long-term or permanent loans.
The museum should consider the identity of the borrower and their plans for the object. It should be satisfied that the security and environment of the venue meets conservation standards and that the staff are experienced in handling similar objects.
It is important that all objects entering or leaving the museum as loans be accompanied by appropriate documentation setting out the responsibilities of each party with respect to the loan and all/any conditions about care, display and transport. The date of the loan and the date of return will be clearly stated.
As it is an essential requirement of care to know the location of all objects, loans should be recorded in a separate Loans Register, and have an identifying prefix for example “L” as in L2004.2.

Procedures

Staff should be familiar with the museum’s interpretation and collection policies when considering loan arrangements.

The arrangements and conditions attached to incoming and outgoing loans must be recorded appropriately as in the case of acquiring and deaccessioning objects. This is an absolute minimum requirement.

It is recommended that the museum develop a specific form for loans that is clearly worded and easy to read. It must cover comprehensively all aspects of the loan; the names of the lending and borrowing organisations, dates of the proposed loans, condition of the item, as well as all conditions pertaining to the loan. Loan agreement forms are legally binding contracts and need to address the following points:

Principle – It is not good practice to build a permanent exhibition around permanent or long-term loans because they can be recalled at any time and the museum may be left with a gap in the exhibition. It is wiser for the museum’s valuable resources to be spent on obtaining its own objects to complete its collection.

Parties – Make sure the person being dealt with has the authority to borrow or loan the object. The names of both parties should be included on the form.

Subject – The object should be viewed when leaving the collection and a full description and the condition recorded. If possible, take a clear photograph of the object. On the object’s return, and preferably before the borrowing organistation’s representative has left, confirm that its condition has not deteriorated. It is reasonable to ask that the borrowing museum insure the object(s) loaned during the period of the loan. This condition should be stated in the agreement.

Condition – All incoming loans should be inspected on arrival and before return and any differences from the accompanying description of condition be recorded.

Purpose – State the type(s) of use to which the loan may be put. Whether it is for exhibition, research or other purposes must be stated.

Period – It is important that an end date be negotiated and recorded at the outset of the loan. An alteration to the conditions about return can be negotiated at a later time.

Fees and expenses – Policies in regard to lending fees and expenses need to be agreed upon by the Committee, written in the Collections Policy and explained to the interested borrower before any loan procedure begins.

Transport – Even though it is the lender’s right to choose the method of packing and transport, it is standard practice for the borrower to bear transport costs, and costs such as framing for art works, display supports and any conservation treatment permitted by the lending organisation.

Insurance costs – It is standard practice for the borrower to bear insurance costs to cover the object from preparation for the loan until it is returned to the lending museum. The lending museum sets the insurance value for the object, which is based on current market value, i.e. what a similar object, in similar condition would fetch at auction. It is the responsibility of the lender to ensure that the borrowing organisation accepts the valuation and provides some proof they will cover the insurance.

Copyright – The lending museum should be contacted if the borrowing organisation wishes to reproduce images or form of a loaned object. As the owner of the object may not be the copyright holder and it may take some time to contact the holder, it is advisable to begin this process at the beginning of the loan arrangements. The copyright holder has the right to charge a reproduction fee.

Attribution – The lender should be acknowledged by the borrowing organisation in any text accompanying the object. The preferred wording of the acknowledgement is best to be decided on before the loan starts.

Record Keeping – It is extremely important to keep records of incoming and outgoing loans. It is vital to:

know where an object is and when it will be returned
have proof that it has been received by the borrowing organisation
have proof that the borrower has returned the loan

The best way to do this is to supply a loan form in duplicate with both copies signed by each party to the loan. The copy agreement is then filed appropriately and safely. This is part of the history of the object and is a collection management document. It is good practice to have a separate filing system for all collection documentation rather than having a “correspondence” file. Remember to amend other collections management documentation in relation to the status of a loan. This will include location indexes on the catalogue worksheet. Some organisations even go so far as to catalogue, classify and locate a borrowed object. If this happens, the item needs also to be renumbered. Generally the borrowed object is given an 'L' prefix before a running sequence of numbers, following the same principle as the numbering system in the remainder of the collection. This allows the object to be given the same treatment as the museum's own collection, having the ability to be controlled and accessed, yet to remain distinguishable.

References and further reading:

Heritage Collections Council, ReCollections at the Australian Institute for the Conservation of Cultural Material (AICCM) website

Museums and Galleries NSW, Online Resources, in particular:

Museums Australia Inc (NSW), Museum Methods, A Practical Manual for Managing Small Museums, Sections 3.12 Loans