1 Each loan shall
(a) be authorized by a Divisional Director of the Council;
(b) be directly related to teaching, research or development; and
(c) be made by means of a written loan agreement that
(i) indicates the period of the loan, which in no case shall be in excess of two years,
(ii) reserves to the Council the right to require the temporary return of the equipment at the request of the Council and to terminate the loan, and
(iii) specifies that the borrower shall
(A) be responsible for all costs associated with the loan including, but not limited to, the transportation, handling, packing, installation, removal, operation, replacement, maintenance, repair and insurance,
(B) where the loan is made to municipal corporations, hospitals, universities or other educational institutions or persons for the purpose of teaching, research or development, be responsible for and shall indemnify and save harmless Her Majesty from and against all claims or liens arising in the course of the loan or attributable to the loan or based on the equipment or the use thereof,
(C) sign a statement, at the time of the commencement of the loan, describing the condition of the equipment, and
(D) on termination of the loan, return the equipment in the condition described, fair wear and tear excepted.
2 The maximum value of any equipment for each loan to any borrower shall not exceed one million dollars unless approval by Treasury Board has been obtained.
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