While an interagency loan does not normally exceed one (1) year, it may be extended subject to the agreement of all parties. Loans usually result from temporary selections in the receiving organization. During the loan period, the staff member is subject to the administrative supervision of the receiving organization but has no contractual relationship with it. Staff members on an inter-agency load will retain their contract with the releasing organization and continue to be subject to the releasing organization’s Staff Regulations and Rules.
Loans can be reimbursable (if the cost of the release of the staff is paid back to the releasing organization) or non-reimbursable. At the end of the loan period, staff members are expected to return to the releasing organization unless they transfer to the receiving organization. Loan agreements need to be prepared, usually by the releasing entity, for signatures of releasing entity, receiving entity and the staff member concerned. A provision on the return rights of the staff member is usually included and highly recommended in the loan agreement.
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