Canada Travelling Exhibitions Indemnification Regulations (SOR/99-467)

Interpretation

1 The definitions in this section apply in these Regulations.

Act

Act means the Canada Travelling Exhibitions Indemnification Act. (Loi)

applicant

applicant means an institution situated in Canada that organizes or hosts a travelling exhibition, and that applies for an indemnity agreement on its behalf, or on behalf of all institutions that host the exhibition in Canada; (demandeur)

indemnity agreement

indemnity agreement means an agreement entered into under subsection 3(1) of the Act; (accord d’indemnisation)

owner

owner means the individual, corporation, partnership, association, trust, government, or other entity that holds full and unconditional title to an object or appurtenance, or their designated representative; (propriétaire)

Application for Indemnity Agreement

2 An applicant may seek an indemnity agreement in respect of objects and appurtenances in a travelling exhibition if the minimum total fair market value of all objects and appurtenances in the exhibition is $500,000.

3 An applicant who seeks an indemnity agreement shall submit an application to the Minister that sets out the following information:

• (a) the title, schedule, list of venues and an abstract or summary of the travelling exhibition in respect of which an indemnity agreement is sought, and the name of its project director with a list of his or her professional qualifications;

• (b) a description of each object and appurtenance to be indemnified, including its

  • (i) name,

  • (ii) creation date or age,

  • (iii) material or medium, and

  • (iv) dimensions;

• (c) the name and address of the owner of each object and appurtenance to be indemnified, and written evidence from each owner that they are willing to lend the object or appurtenance to the proposed travelling exhibition and are prepared to be bound by the terms of an indemnity agreement;

• (d) the fair market value of each object and appurtenance to be indemnified and the source and justification of the fair market value;

• (e) the total fair market value of all objects and appurtenances in the travelling exhibition;

• (f) a description of any other insurance or indemnification coverage that will be applicable to the objects or appurtenances to be indemnified during any period in respect of which an indemnity agreement is sought;

• (g) a description of any loss or damage that occurred at the premises of the applicant or other institution hosting the travelling exhibition that involved an object or appurtenance during the three years before the application, if the amount of loss or damage was more than $5,000, including the date of loss or damage, the nature and cause of the loss or damage, and the fair market value of each lost or damaged object or appurtenance both before and after the loss or damage;

• (h) information that shows how the travelling exhibition would meet the assessment criteria set out in section 5; and

• (i) any other information that is relevant in order to allow the Minister to determine whether to enter into an indemnity agreement.

4 The Minister may have the fair market value of an object or appurtenance that is the subject of an application for an indemnity agreement reviewed, in which case the procedure set out in section 14 shall apply, with any modifications that the circumstances require.

Assessment Criteria

5 The Minister shall apply the following criteria when assessing whether to enter into an indemnity agreement in respect of an object or appurtenance:

• (a) when the theme and contents of the travelling exhibition are Canadian, they must enable present and future generations of Canadians to be exposed to their human, natural, artistic and scientific heritage, and thereby enhance their awareness, understanding, and enjoyment of the richness of that heritage;

• (b) when the theme and contents of the travelling exhibition are of a global significance, the travelling exhibition must display objects of cultural property that are of significance in the areas of archaeology, prehistory, history, sociology, ethnography, art or science;

• (c) the travelling exhibition must maintain high museological standards;

• (d) the travelling exhibition must further knowledge concerning the theme or material presented;

• (e) public awareness of and access to the travelling exhibition must be maximized at each venue;

• (f) the risk of damage to the object or appurtenance, because of its size or the fragile nature of its composition or material, must be minimal;

• (g) the object or appurtenance must be transported by appropriate means of transportation and by competent shippers, in order to minimize the risk of loss or damage;

• (h) the object or appurtenance must be packed and crated in such a manner as to withstand the normal hazards associated with the applicable means of transportation, and must be packed, unpacked and installed by competent professionals;

• (i) the facilities of all institutions hosting the travelling exhibition must meet museum industry standards with regard to arrangements for security, fire protection and collections preservation, including environmental control;

• (j) appropriate arrangements must be made with respect to enhanced security measures that are necessary for the object or appurtenance while on display, in storage and in transit;

• (k) when the object or appurtenance has particular environmental requirements, it must be subject to appropriate environmental control, including lighting, temperature, relative humidity and shock or vibration, while on display, in storage and in transit; and

• (l) the object or appurtenance must be safe and secure while on display, in storage and in transit.

Scope of Indemnity Agreements

6 An indemnity agreement shall apply only in respect of the portion of the fair market value of an object or appurtenance that is not insured or indemnified, during the period in which the agreement is in effect, by other insurance or indemnification coverage not provided for under these Regulations.

Deductible

7 The deductible amount of indemnity coverage for each travelling exhibition, based on the total fair market value of all the objects and appurtenances in it, is

• (a) $30,000, if the total fair market value is from $500,000 to $3,000,000;

• (b) $40,000, if the total fair market value is from $3,000,001 to $10,000,000;

• (c) $50,000, if the total fair market value is from $10,000,001 to $50,000,000;

• (d) $75,000, if the total fair market value is from $50,000,001 to $100,000,000;

• (e) $200,000, if the total fair market value is from $100,000,001 to $200,000,000;

• (f) $300,000, if the total fair market value is from $200,000,001 to $300,000,000;

• (g) $500,000, if the total fair market value is from $300,000,001 to $450,000,000; and

• (h) $700,000, if the total fair market value is from $450,000,001 to $600,000,000.

Maximum Coverage for Single Conveyance

8 Indemnity coverage for objects and appurtenances transported in a single conveyance may not exceed $100,000,000.

Period of Coverage

9 The period of coverage in an indemnity agreement shall not exceed two years, but the Minister may extend the period for an additional year if

• (a) an extension of the loan of an object or appurtenance is necessary to accommodate additional venues;

• (b) delays in transit occur that are beyond the control of the applicant; or

• (c) the Minister has undertaken to restore a damaged object or appurtenance under subparagraph 12(b)(ii).

Condition Report

10 Within 15 days after the applicant assumes responsibility for the safeguarding of an object or appurtenance that is the subject of an indemnity agreement, the applicant shall file with the Minister a condition report describing the physical condition of the object or appurtenance as of the time that the applicant accepts responsibility for its safeguarding.

Indemnification Claims Procedure

• 11 (1) In the event of loss or damage to an object or appurtenance that is the subject of an indemnity agreement, the owner

  • (a) shall notify the Minister within two business days after the discovery of the loss or damage; and

  • (b) may, where the owner is seeking to be indemnified under an indemnity agreement, file with the Minister a claim in writing within 90 days after the date specified in an indemnity agreement by which an object or appurtenance is to be returned to the place designated by the owner, or within 60 days after the date on which the object or appurtenance is so returned, whichever date is earlier.

• (2) The claim must be accompanied by written proof of the loss or damage that is supported by a statutory declaration that includes the following information:

  • (a) a complete and detailed inventory of the lost or damaged object or appurtenance with detailed information regarding its fair market value before and after the loss or damage;

  • (b) the location of the object or appurtenance at the time of the loss or damage;

  • (c) when and how the loss or damage occurred, and if it was caused by fire or explosion, how the fire or explosion started, as far as the owner knows or believes;

  • (d) a statement that the loss or damage did not occur through any wilful act or negligence of the owner or with the owner’s connivance;

  • (e) all condition reports that, under the indemnity agreement, have been completed in respect of the object or appurtenance throughout the travelling exhibition; and

  • (f) any other documentation or information that is relevant in order to allow the Minister to determine the validity of the claim.

Validity of Claim

12 If the Minister determines that a claim is valid and that

• (a) the loss is total, the Minister shall pay the amount of the claim to the owner in accordance with the terms of the indemnity agreement; or

• (b) the loss or damage is partial and the Minister agrees with the consequent reduction in the fair market value of the object or appurtenance as set out in the claim, the Minister shall

  • (i) pay the amount of the claim to the owner, in accordance with the terms of the indemnity agreement, or

  • (ii) subject to the written agreement of the owner, have the object or appurtenance restored to the condition described in the report referred to in section 10.

• 13 (1) If the Minister determines that a claim is not valid, the Minister shall advise the owner of the object or appurtenance of this in writing.

• (2) An owner may have the determination of the Minister reviewed by a competent and disinterested arbitrator selected jointly by the Minister and the owner.

• (3) The arbitrator’s determination is final and binding on the parties.

Disagreement on Fair Market Value

• 14 (1) If the Minister and the owner fail to agree on the extent of the partial loss or damage to, or on any consequent reduction in the fair market value of, the object or appurtenance, each shall select a competent appraiser or appraisers who shall independently consider the extent of the partial loss or damage and each determine any consequent reduction in the fair market value of the object or appurtenance.

• (2) If the Minister and the owner agree on the extent of the partial loss or damage and the consequent reduction in the fair market value of an object or appurtenance, based on the determinations of the appraisers made under subsection (1), the Minister shall act in accordance with subparagraph 12(b)(i) or (ii).

• (3) If the Minister and the owner continue to disagree on the extent of the partial loss or damage and the consequent reduction in the fair market value of an object or appurtenance the Minister and owner shall jointly select a competent and disinterested arbitrator to determine the matter.

• (4) The arbitrator’s determination is final and binding on the parties.

Costs of Appraisal and Arbitration

• 15 (1) Each appraiser and all expenses incurred during the preparation of an appraisal shall be paid by the party selecting him or her.

• (2) The arbitrator and all expenses incurred during the preparation of an arbitration shall be paid by the parties in equal shares.

Subrogation

16 After compensation for loss or damage has been paid under these Regulations, the Minister shall be subrogated to all the owner’s rights of recovery against any person or entity.

Buy-Back

• 17 (1) If compensation has been paid under these Regulations in respect of an indemnified object or appurtenance that was lost and then recovered, the object or appurtenance becomes the property of the Minister on its recovery.

• (2) The owner may buy back the object or appurtenance and if the owner does so, its price shall be

  • (a) if it is not damaged, the amount of compensation paid to the owner under these Regulations; and

  • (b) if it is damaged, the fair market value of the object or appurtenance in its damaged state.

• (3) If the Minister and the owner do not agree on the fair market value of an object or appurtenance in its damaged state, the procedure set out in section 14 shall apply, with any modifications that the circumstances require.

Coming into Force

Footnote ^*18 These Regulations come into force on the day on which the Canada Travelling Exhibitions Indemnification Act, being chapter 29 of the Statutes of Canada, 1999, comes into force.

• Return to footnote ^*[Note: Regulations in force December 15, 1999, see SI/99-137.]