News

Petra Warrington discusses loaning art at home and abroad in Antiques Trade Gazette

  • January 02, 2020
  • By Petra Warrington, Senior Associate

Loaning art at home and abroad – a check list

This article was originally published in Antiques Trade Gazette and can be accessed here

As a collector, there are a number of attractive reasons why you may wish to loan an artwork or antique to an institution, either temporarily or long term, writes Petra Warrington of Hunters Law.

A well-placed loan opens dialogue with institutions and experts, enhances the reputation of the work and the broader collection and reaches new audiences.

The loan may also produce an income by means of a lending fee and/or royalties and save the lender the costs of insuring, transporting and conserving the work while on loan.

Despite the obvious appeal of lending, collectors face significant risks in lending works, particularly overseas.

Some key points to bear in mind are:

► Ensure that you fully document the terms of any loan and specify how and where any disputes will be resolved.

► Obtain full and comprehensive ‘nail to nail’ insurance covering the object from the moment it is taken off your wall to the moment it is returned.

► If you are loaning to a public institution in the UK and seeking cover under the Government Indemnity Scheme (GIS), be aware of the mandatory provisions that need to be included in documentation.

► Before the artwork goes out on loan, have a conservator assess its condition (usually at the borrower’s expense) and ensure that the condition is re-assessed by the same conservator on the return of the artwork.

► Set out the environmental and display conditions that the work requires and any security specifications.

► Agree how the work is going to be transported and hung or installed and by whom.

► Consider whether the work is protected by copyright. Specify whether the borrower is permitted to take photographs and what restrictions apply and who will retain copyright.

► Agree the credit line to be used in all publications of the work and on any label.

► When loaning abroad, be prepared to comply with any customs formalities to allow the work to travel.

► If there is any uncertainty regarding the history or provenance of the work being lent, consider whether immunity from seizure is required and available in the country that the work is going to. Immunity from seizure can be essential when dealing with artworks that have a gap in their provenance and may have been lost, stolen or confiscated at some point in their history.

Some, but not all, of these risks can be mitigated through negotiations with the borrower and careful drafting of the loan agreement.

Establishing a good relationship with the borrowing institution, knowing what pitfalls to avoid and seeking legal advice will facilitate a successful loan.

Related News

Sep 03, 2021
Gregor Kleinknecht discusses NFTs in the London Art Week Summer 2021 catalogue
Jul 26, 2021
Gregor Kleinknecht comments on the national crackdown on money laundering and fraud, and how the new regulations could cripple the small art market in The Times
Jul 22, 2021
Hunters’ success in the Chambers HNW 2021 Guide
May 12, 2021
Anastassia Dimmek comments on investing in NFTs and what UHNW clients should consider in Citywealth
Jan 25, 2021
Gregor Kleinknecht and Petra Warrington contribute to the first edition of The Art Law Review
Dec 10, 2020
Gregor Kleinknecht discusses lessons learned about buying and selling art during a global pandemic for London Art Week
Dec 03, 2020
Petra Warrington contributes to the International Bar Association’s Art law: Restrictions on the export of cultural property and artwork handbook
Jul 07, 2020
Gregor Kleinknecht appointed as Chairman of Professional Advisors to the International Art Market’s Board
Jun 25, 2020
Petra Warrington to participate in a panel discussion hosted by London Art Week
Jun 24, 2020
Gregor Kleinknecht and Petra Warrington highlight top ten tips for buying art, as part of London Art Week’s newsletter

© Hunters Law LLP 2021 | Privacy NoticeLegal & Regulatory | Cookies Policy | Complaints Procedure.

Hunters Law LLP is authorised and regulated by the Solicitors Regulation Authority (number 657218)