An interagency loan does not normally exceed one (1) year but can be further 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 will continue to be subject to the Staff Regulations and Rules of the releasing organization and retain their contract with the releasing organization.
Loans can be reimbursable, (if the cost of the release of the staff will be given 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 resign from their position in the releasing organization to 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 return right of the Staff Member is usually included in the loan agreement and highly recommended.
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