Equipment Loan Agreements (ELA)

The University may request to borrow from an outside entity (often referred to as a “sponsor”), or a sponsor may offer to loan to the University, certain equipment for research purposes, usually for free of charge.  Equipment is defined as an article of nonexpendable, tangible personal property having a useful life of more than one year and an acquisition cost of $5,000 or more per acquisition.

When a sponsor wishes to loan equipment to a University researcher, the researcher should notify the department chair and contact the Office of Industry Engagement (OIE) or Office of Sponsored Projects (OSP) for the next steps.

Additionally, equipment in the University’s inventory and owned by the University (other than equipment purchased with Federal Government funding*) may be loaned to an external organization or individual.  However as an entity of the State of Texas, there are many considerations for either loaning equipment to or borrowing equipment from an outside entity. For example,

  • When loaning equipment to the University, a sponsor must hold either the title to the equipment or a license to use and loan such equipment.
  • At the end of the loan period, the equipment will be returned to the owner/licensor of the equipment, unless other arrangements are made.
  • Proof of insurance on the equipment is required.  Responsibility for maintaining the insurance is dependent on the type of equipment and the arrangement made between the University and the sponsor.
  • Most ELAs are no cost agreements; however, in some circumstances rental rates, delivery charges, deposits, or other similar costs may be appropriate. All additional costs should be reasonable.
  • Other than right to use the equipment, there should be no other rights granted under an ELA.

Contact the Office of Industry Engagement for more information.

* It should be noted that there are certain restrictions on Government equipment owned by entities other than the Federal Government. Lending Government equipment may conflict with the rights and regulations set in place by that Governmental entity, so always check with our Office of Sponsored Projects if a loan involves Government equipment.

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