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Business and Financial Policies and Procedures

12.3.6 Loan Equipment to Another Institution

Policy Statement

Equipment acquired with restricted, sponsored project funds may be loaned to another institution for a limited period under the following circumstances:

  • The research being performed at the recipient institution is under the direction of a principal investigator at the University of Illinois System;
  • The equipment was purchased with sponsored project funds; and,
  • The equipment is essential to the continuation of the sponsored project.

Equipment not purchased with grant or other sponsored project funds may also be loaned to another institution, regardless of whether a current Principal Investigator from the University of Illinois System is directing research.

Do not move any equipment until all these steps and approvals have been completed.

Procedure

To loan equipment to another institution:

  1. Consult Banner Fixed Assets to confirm that your unit is on record as the responsible organization for the equipment to be loaned and that it is titled to the state of Illinois.
  2. Determine the funding source of the equipment.
  3. Complete the Equipment Loan Agreement and appropriate Schedule of Equipment in Exhibit 1 based on the funding source.
  4. Obtain the recipient institution signature.
  5. Complete the Property Accounting Contract Approval Routing Form (PA-CARF) through Section 4.
  6. Route the Agreement and PA-CARF to the appropriate University office as indicated on the PA-CARF using the following guidelines:
  • Export-controlled equipment - route through the Office of the Vice Chancellor for Research (OVCR) Export Controls Compliance Officer (UIC) or the OVCR Export Compliance Officer (UIUC).
  • Sponsored equipment - route through the Sponsored Programs Administration (UIUC), Research and Sponsored Programs – Post-Award (UIS) or the  Office of Sponsored Programs – Post Award (UIC) office.
  • Non export-controlled and Non-Sponsored Equipment – route through University Property Accounting and Reporting.

  1. After the Agreement and PA-CARF are routed per the guidelines above, the remaining approvals will be obtained without unit involvement.
  2. University Property Accounting and Reporting (UPAR) will apply the Comptroller signature and then send the Agreement and PA-CARF to the unit letting them know they can loan the equipment.
  3. Eliminate data from electronic storage media before moving the equipment to the recipient institution unless required for sponsored research. In the latter case, confirm that all agreements necessary to authorize the transfer of such data and/or software have been fully executed and that there are no licensing, privacy, or other compliance issues associated with the proposed transfer.
  4. Update the record in FABweb by entering an off-campus location code and a condition code of "L" (Loaned to Other University). If the equipment is accompanying a researcher, enter the UIN of the individual who holds custody of the item in the custodian field. At the end of the existing description add the words "Loaned to" followed by the institution name.
  5. When the loan period has expired, verify that the property has been returned to University premises and update the record in FABweb.

Forms Used in this Procedure

Equipment Loan Agreement
Instructions to complete Equipment Loan Agreement
Property Accounting Contract Approval/Routing Form (PA-CARF)

Related Policies and Procedures

Urbana Supplement - 16.1.4 Equipment, Equipment Leases, and Expendable Supplies
Section 1.3.2 Initiation, Review, and Approval of University Contracts and Leases

Last Updated: January 16, 2020 | Approved: Senior Associate Vice President for Business and Finance | Effective: June 2011

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