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

Jan 10, 2020
Gregor Kleinknecht and Petra Warrington discuss new anti-money laundering rules for the art trade
Jan 09, 2020
Petra Warrington nominated to an officer role in the Art, Cultural Institutions and Heritage Law Committee of the IBA
Nov 18, 2019
Petra Warrington comments on the Fifth Anti-Money Laundering Directive and art law in Antiques Trade Gazette
Nov 08, 2019
Hunters hosted a legal seminar for fine art auctioneers
Nov 06, 2019
Hunters is proud to sponsor the London Art Week 2019 Winter event
Sep 24, 2019
Partner Hetty Gleave is reappointed to the Treasure Valuation Committee
Sep 02, 2019
Gregor Kleinknecht comments on Timothy Sammons misleading clients over sales of works by artists in The Art Newspaper
Aug 29, 2019
Hetty Gleave discusses the largest coin hoard of the post-conquest period found near Somerset
Aug 09, 2019
Hetty Gleave discusses key legal issues affecting the art world today in Arts and Collections
Jun 20, 2019
Hunters’ Art & Cultural Property team hosts a seminar for fine art auctioneers with Roseberys Auctioneers

© Hunters Law LLP 2020 | Privacy NoticeLegal & Regulatory | Cookies Policy | Complaints Procedure

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