We did this a couple of years ago.  I will try to locate the agreement.  I
believe it was more of a cooperative agreement than just a letter.  You'll need
to check to see if the University will need title to the equipment to cover it
under its insurance policy.  Transfer of title usually will mean the agreement
will need an "as is" warranty clause.  Agreement should include who is
responsible for delivery, installation/setup, maintenance, and return
provisions.  What specific requirements will the University have to provide
(i.e., space, electrical wiring, operator training, etc.).  What are the terms of
the loan?  Is use restricted to one project or is use allowable for other
research?  Any priorities as to use of equipment by University or the Company and
who designates the priorities?  Some companies may want to allow the use of the
equipment (a.k.a. "rent free") and depreciate the value of the equipment over the
time period.  Then turn around and donate the same equipment to the University at
salvage value.  This operates more like a lease or rental agreement, just no
charge for the services.

Hope this helps.

Terry G. Edwards

"Herbert B. Chermside" wrote:

> No form on hand.
>
> I recommend a simple letter agreement, signed by someone at the U who has
> contracting authority.  Matters to consider:  Will the U. cover it under
> its insurance (common for loan); who is responsible for upkeep?  (the U?)
> Who is responsible for shipping it which direction?  Complete list of
> serial numbers, all accessories.   Etc. (common sense items)
>
> I'm guessing that he's loaning it until he's used all the depreciation --
> but could probably get the same tax write off, and maybe all in one year,
> by making the gift.
> Chuck
>
> At 03:09 PM 4/19/99 -0500, you wrote:
> >Good afternoon!
> >
> >One of our faculty members called to ask me if I have or could craft an
> >agreement under which one of the University's benefactors "lends" a large,
> >expensive piece of equipment--a 4-station hipware (sp?) simulator--to the
> >University, specifically the researcher's lab.  The loan would last for at
> >least two years.  (The benefactor was going to gift this equipment to the
> >University, but for some reason decided to "loan" it instead.  He may end up
> >gifting it, but the status is a loan at this point.)
> >
> >Before I agonize too much over how this situation can be turned into an
> >agreement, has anyone else ever had a similar arrangement for which an
> >agreement was drafted?  If so, would you be willing to share it with me?
> >
> >Thanks in advance for any help...
> >
> >Patty Hagen
> >Director, Research Services
> >Saint Louis University
> >314-977-2241 office
> >314-977-3943 fax
> >
> >
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