Naval History and Heritage Command

Conditions for the Custody and Care of Navy Historical Property

In order to minimize the risk to Navy-owned items and ensure their availability to future generations, Borrower/Recipients must agree to meet these conditions and requirements:

1. Ownership: The Department of the Navy, through the Curator Branch, Naval History and Heritage Command, retains title and ownership of Navy-owned historical property at all times.

a. The Borrower/Recipient shall obtain no legal interest in the Navy-owned historical property by reason of a loan agreement.

b. The Borrower/Recipient will not to use the Navy-owned historical property as security for any loan, and will not sell, lease, rent, lend, license or exchange the property for monetary gain or otherwise under any circumstances.

 

2. Custody: The Borrower/Recipient will retain physical custody of the Navy-owned historical property for the specified loan period.

a. The Borrower/Recipient agrees to accept the Navy-owned historical property on an "as is, where is" basis, and to sign the Curator Branch, Naval History and Heritage Command loan agreement. b. The Borrower/Recipient will retain the Navy-owned historical property at the Borrower/Recipient's facility for the loan period, specified on the loan agreement, and at no time should Navy-owned historical property be transferred to a third party without prior consent from the Curator Branch, Naval History and Heritage Command..

 

3. Use: The Borrower/Recipient will display the Navy-owned historical property in careful, prudent, dignified and respectful manner.

a. The Borrower/Recipient will display and exhibit Navy-owned historical property to accurately reflect the history, heritage and traditions of the naval service, as defined and interpreted by the Department of the Navy.

b. The Borrower/Recipient will use the Navy-owned historical property for static display purposes only.

c. The Borrower/Recipient will not use the Navy-owned historical property consumptively or functionally. For example, boats, aircraft, and other vehicles must not be reactivated for the purpose of navigation or movement under their own power; weapons will not be reactivated for saluting use or replication/recreation of historical events; uniforms will not be worn as costumes; bells will not be rung.

 

4. Physical protection: The Borrower/Recipient will provide reasonable and adequate care for the Navy-owned historical property in their possession.

a. The Borrower/Recipient will protect Navy-owned historical property from fire, smoke, and flood damage.

b. The Borrower/Recipient will provide 24-hour physical and/or electronic security, as specified by the Curator Branch, Naval History and Heritage Command.

c. The Borrower/Recipient will protect Navy-owned historical property from excessive or inappropriate light, temperature, humidity, insects, and vermin; and other direct or potential environmental hazards.

d. The Borrower/Recipient will not modify Navy-owned historical property in any way which would alter the original form, design, or the historical significance of the property.

e. The Borrower/Recipient will not alter, mark, or in any way deface or willfully damage the Navy-owned property while in their possession.

f. The Borrower/Recipient will perform routine inspections on the Navy-owned property on a regular schedule. The Borrower/Recipient will propose any planned restoration and conservation on the Navy-owned property and can proceed with the proposed treatment only with the written permission of the Curator Branch, Naval History and Heritage Command, and abide by the treatment plan approved by the Curator Branch, Naval History and Heritage Command.

 

5. Liability: The Borrower/Recipient is fiscally and legally responsible for the Navy-owned historical property in their custody.

a. The Borrower/Recipient is responsible for all arrangements and to assume and pay all costs, charges, and expenses incident to the loan of Navy-owned historical property, including but not limited to administration; packaging, handling, and transportation; display and exhibition of the artifacts on loan..

b. The Borrower/Recipient will insure Navy-owned historical property against theft, damage, loss, or destruction while in their custody, unless otherwise noted. Insurance should be for the fair market value of the Navy-owned historical property under an all-risk, wall-to-wall policy subject to the following standard exclusions: Wear and tear, gradual deterioration, insects, vermin, or inherent vice, repairing, restoration, warlike action, insurrection, rebellion, nuclear reaction, nuclear radiation, or radioactive contamination. Should the insurance be waived, or there occurs a lapse of insurance, the Borrower/Recipient shall indemnify and hold harmless the Department of the Navy for any and all loss or damage to the objects occurring during the course of the loan, except for loss or damage resulting from wear and tear, gradual deterioration, inherent vice, war, and nuclear risk.

c. Civilian, non-government Borrower/Recipients will indemnify, hold harmless, and defend the Lender from and against all claims, demands, actions, liabilities, judgments, costs, and attorney’s fees arising out of claims on account of, or in any manner predicated upon personal injury, death, or property damage caused by or resulting from possession and/or use of the loaned artifact(s).

d. U.S. Government and U.S. Armed Forces Borrower/Recipients are exempt from insuring U.S. Government-owned or U.S. Armed Forces-owned property, per GAO/OGC-91-5, "Principles of Federal Appropriation Law", VOL. 1 Section 4-144-145 (1991), unless otherwise noted.

 

6. Accountability: The Borrower/Recipient will annually account for the Navy-owned historical property in their possession and credit the Naval History and Heritage Command for the loan.

a. The Borrower/Recipient will report annually to the Curator Branch, Naval History and Heritage Command on the condition and location of the Navy-owned historical property. Reports must include:

(1) A listing of all Navy-owned historical property in their custody

(2) The physical condition of each artifact, noting all points of concern or deterioration including rusting, fading, scratches, chips, etc. 

(3) The location of each artifact; include address, as well as building and exhibition/room location if necessary

(4) A current color photograph of each artifact. The photograph should be from close enough range and at a reasonable quality so that the condition of the artifact can be verified.

b. The Borrower/Recipient will acknowledge and credit the Department of the Navy for the Navy-owned historical property with use of the phrase “Courtesy of Naval History and Heritage Command, Catalog No.” " in any exhibits or publications resulting from the loan, and provide the Curator Branch, Naval History and Heritage Command with copies of any resulting publications at no cost.

c. The Borrower/Recipient shall immediately notify the Curator Branch, Naval History and Heritage Command of any damage, loss, or destruction to the Navy-owned historical property.

d. The Borrower agrees to allow authorized Department of Defense representatives access to the Borrower’s facilities to assure accuracy of information provided by the Borrower and compliance with the terms of this loan agreement. 

 

7. Expiration/Termination: The Curator Branch, Naval History and Heritage Command retains the right to allow the loan period to expire, to cancel the loan, or to recall any Navy-owned historical property at any time for good cause.

a. The Curator Branch, Naval History and Heritage Command and Borrower/Recipient, as applicable, will give reasonable notice of the expiration / termination of a loan agreement.

(1) The Borrower/Recipient will contact the Curator Branch, Naval History and Heritage Command for disposition instructions 90 days prior to the end of the loan period.

(2) The Curator Branch, Naval History and Heritage Command will make every effort to give reasonable notice in the event of repossession.

b. The failure of the Borrower/Recipient to observe any of the conditions in the agreement shall be sufficient cause for the Curator Branch, Naval History and Heritage Command to terminate the loan and to repossess the Navy-owned historical property. The Curator Branch, Naval History and Heritage Command may take legal and / or criminal action against the Borrower/Recipient, as applicable and appropriate.

(1) The Borrower/Recipient certifies that the information relative to the loan of the Navy-owned historical property is true and correct to the best of their knowledge, and they understand that concealing a material fact and/or making a fraudulent statement in dealings with the Federal Government may constitute a violation of Title 18 of the US Code Section 1001, a criminal offense, punishable by a maximum of five (5) years of imprisonment, a $10,000 fine or both.

(2) The Borrower/Recipient certifies that if they embezzle, steal, purloin, or knowingly convert to the Borrower/Recipient’s use or the use of another, or without authority, they sell, convey or dispose of the Navy-owned historical property or receive, conceal, or retain the same with intent to convert it to their use or gain, knowing it to have been embezzled, stolen, purloined or converted — shall be fined under Title 18 of the US Code Section 641 or imprisoned not more than ten years, or both.

(3) The Borrower/Recipient certifies that if they willfully injure or commit any depredation against Navy-owned historical property, willfully injure or destroy, or attempt to injure or destroy, any structure, plaque, statue, or other monument on public property commemorating the service of any person or persons in the armed forces of the United States that contains and / or includes the Navy-owned historical property shall be fined under Title 18 of the US Code Sections 1361 and 1369, imprisoned not more than 10 years, or both.

c. The Borrower/Recipient shall defray all maintenance, freight, storage, crating, handling, transportation, and other charges attributable to repossession of Navy-owned historical property.

 

8. Renewal: The Curator Branch, Naval History and Heritage Command retains the right to determine whether to renew the loan. The Borrower/Recipient may request a renewal of the loan of Navy-owned historical property and must do so in writing. A maximum of two renewals are allowed, for a total of 9 years an artifact can be on loan.

a. The Curator Branch, Naval History and Heritage Command will evaluate renewing the loan. Factors for renewing the loan include but are not limited to:

(1) The Borrower/Recipient's demonstrated continuing ability to meet the conditions of the previous period, based on

a. Timely and complete Borrower/Recipient annual reports to the Curator Branch, Naval History and Heritage Command

b. Curator Branch, Naval History and Heritage Command on-site inspection report(s), as noted

 (2) Determination by the Curator Branch, Naval History and Heritage Command of the physical condition of the Navy-owned historical property.

(3) Determination by the Curator Branch, Naval History and Heritage Command of the efficacy and value of retaining the Navy-owned historical property at the Borrower/Recipient’s location.

(4) Other Curator Branch, Naval History and Heritage Command requirements.

b. The Curator Branch, Naval History and Heritage Command positive decision will be communicated in writing.

 

9. Packaging, Handling, and Transportation: The Borrower/Recipient will ensure the safe and timely shipping out from and return of the Navy-owned historical property to the Curator Branch, Naval History and Heritage Command on completion and / or termination of the loan agreement.

a. The Borrower/Recipient is responsible for all arrangements and is to assume and pay all costs, charges, and expenses related to Navy-owned historical property including preparation for transportation,  demilitarization/ render safe procedures, disassembly, conservation, packing, crating, handling, shipping, insurance and other actions incidental to the movement of the Navy-owned historical property to the Borrower/Recipient's location as well as the movement of the same property to the Curator Branch, Naval History and Heritage Command at the conclusion of the loan.

b. The Borrower/Recipient will comply with Curator Branch, Naval History and Heritage Command specific instructions concerning the proper handling and safe transport of Navy-owned historical property, as noted.

c. The Borrower/Recipient may arrange to pick up and return the Navy-owned historical property directly from the Curator Branch, Naval History and Heritage Command, as noted. Two drivers are required to transport artifacts. The transport vehicle cannot be left unattended at any point during transit.

d. For all other Borrower/Recipients commercial shipping and transportation services are required, and are the Borrower/Recipients responsibility to select and manage.

For more information about the care and custody of material, contact the Curator Branch.

Published:Mon Oct 02 09:22:11 EDT 2017