Image credit: Andrej Lisakov on Unsplash
Set the right terms, protect your collection, and keep trust intact with smart loan agreements.
Loaning artwork can enrich exhibitions, expand access, and build community partnerships. But without a strong loan agreement, even the best-intentioned loan can lead to misunderstandings, financial risk, or even damage to trust and reputation.
A well-drafted loan agreement protects both the lender and the borrowing institution, making expectations clear and ensuring accountability. Here are best practices to guide you as you develop or review your collection loan agreements.
Why loan agreements matter
Loan agreements aren’t just paperwork — they’re legal and ethical frameworks that:
-
Define responsibilities of the lender and borrower.
-
Clarify ownership rights and conditions of use.
-
Protect against liability and disputes.
-
Ensure proper care, handling, and insurance of the artwork.
-
Reinforce transparency and public trust.
Without clear terms, organizations can face disputes over damage, delays in returns, or questions of ownership.
7 key components of a loan agreement
1. Parties and Object Identification
-
Clearly name the lender and borrower.
-
Provide detailed identification of each artwork: title, artist, medium, dimensions, images, and accession numbers.
-
Document the object’s current condition.
Artwork Archive Tip:
Upload condition reports and images to your Artwork Archive account and link them to the loan. This creates a verifiable, time-stamped record that protects both parties if questions arise.
2. Loan Term & Purpose
-
Specify start and end dates of the loan.
-
Define the purpose (exhibition, research, education, etc.).
-
Include procedures for requesting extensions.
3. Care, Handling & Display Conditions
-
State the borrower’s responsibility for proper handling, installation, and storage.
-
Reference environmental standards (e.g., light levels, humidity, temperature).
-
Define security expectations.
4. Insurance & Liability
-
Specify who insures the work during transit and while on loan.
-
Define insurance coverage (wall-to-wall, agreed value, exclusions).
-
Clarify liability for loss, theft, or damage.
5. Transportation & Packing
-
State who arranges and pays for packing, shipping, and couriers.
-
Require professional art shippers when appropriate.
-
Outline condition reporting upon arrival and departure.
6. Reproduction & Copyright
-
Address rights for photography, catalog use, marketing, and digital reproduction.
-
Ensure proper credit line and copyright acknowledgments.
7. Return Procedures
-
Establish how and when the artwork will be returned.
-
Require condition reporting upon return.
-
Define penalties or remedies if return is delayed.
Transparency is critical
Loan agreements should:
-
Respect donor restrictions or artist rights.
-
Avoid conflicts of interest.
-
Ensure that loans support public benefit, not private gain.
Aligning agreements with professional standards (such as the American Alliance of Museums' Code of Eithics) strengthens institutional credibility.
How Artwork Archive can help
Artwork Archive makes managing loans easier and more secure:
-
Track active and past loans with details and dates.
-
Store agreements, insurance certificates, and condition reports in one place.
-
Generate professional reports to share with lenders, borrowers, and insurers.
-
Maintain a permanent record to protect your institution if questions or disputes arise.
Watch this webinar recording all about loan tracking in Artwork Archive.
Loaning artwork is a vital part of collection stewardship, but only when backed by strong, transparent agreements. By implementing these best practices, you protect the artwork, your institution, and the trust of your community.
