ORDER                                      
                                                                               
      Order No.:  4580.2A                                                      
                                                                               
           Date:  1/26/93                                                      
                                                                               
      Initiated                                                                
             By:  ASM-720                                                      
                                                                               
        Subject:  PERSONAL PROPERTY LOAN AGREEMENTS                            
                                                                               
      1.  PURPOSE.  This order establishes guidelines, defines and             
      assigns responsibilities to all Federal Aviation Administration          
      (FAA) property managers, and prescribes standards and procedures         
      for the management and control of domestic and international             
      personal property loan agreements.                                       
                                                                               
      2.  DISTRIBUTION.  This order is distributed to the branch level         
      in Washington headquarters, regions, and centers; and a standard         
      distribution to all field offices and facilities.                        
                                                                               
      3.  CANCELLATION.  Order 4580.2, Loan Agreements, dated April 13,        
      1977, is canceled.                                                       
                                                                               
      4.  EXPLANATION OF CHANGES.                                              
                                                                               
          a.  The term "license" used throughout Order 4580.2 has been         
      replaced with the term "permit."                                         
                                                                               
          b.  The citation of the U.S. Economy Act of 1932 has been            
      changed from "32 U.S.C. 68b" to "31 U.S.C. 1535."                        
          c.  All references to the term "lease" have been deleted.            
                                                                               
          d.  All references to "Real Property" have been deleted.             
      (Real property lease agreements are addressed in Order 4420.3,           
      Land Acquisitions, and Order 4420.4, Space Acquisition).                 
                                                                               
      5.  DELEGATION OF AUTHORITY.  Headquarters, regions, and centers         
      may delegate authority to negotiate or execute loan agreements.          
      Delegation shall be in writing and shall be consistent with              
      assigned organizational responsibilities.  If FAA requires               
      reimbursement for loaned or borrowed property, the latest version        
      of Order 2500.35, Reimbursable Agreements Covering Services and          
      Materiel Provided by the FAA, must be consulted for policy               
      guidance.  The following legal authorities apply to all property         
      loan agreements:                                                         
                                                                               
          a.  Federal Aviation Act of 1958, as amended (49 U.S.C. 1301,        
      et. seq).                                                                
                                                                               
          b.  U.S. Economy Act of 1932 (31 U.S.C. 1535).                       
                                                                               
          c.  International Aviation Facilities Act of 1948, as amended        
      (49 U.S.C. 1151, et. seq.).                                              
                                                                               
          d.  Foreign Assistance Act of 1961, as amended (22 U.S.C.            
      2151, et. seq.).                                                         
                                                                               
          e.  Federal Property Services Act of 1949, as amended.               
                                                                               
          f.  Federal Property Management Regulations (FPMR) 41 CFR            
      101.                                                                     
      6.  DEFINITIONS.                                                         
                                                                               
          a.  Loan Agreement.  An executed document between authorized         
      representatives of a loaning agency and a receiving agency which         
      prescribes the terms and conditions under which FAA provides or          
      receives personal property on a temporary and/or reimbursable            
      basis.                                                                   
                                                                               
          b.  Interagency Agreement.  A written agreement between the          
      FAA and another Federal agency where the FAA agrees to receive or        
      exchange supplies or services with the other agency, and FAA             
      funds are obligated.                                                     
                                                                               
          c.  Foreign Loan Agreement.  An executed document between            
      authorized representatives of a loaning agency and a receiving           
      foreign government which prescribes the terms and conditions             
      under which personal property is loaned to or from foreign               
      governments.  Both FAA-owned property and property borrowed by           
      FAA for the express purpose of loaning it to a foreign government        
      are covered by Memorandums of Agreement (MOA).                           
                                                                               
          d.  Permit.  An official written document which allows the           
      use of agency property by a private or government organization.          
                                                                               
          e.  Users.  Private organizations, governments, domestic or          
      foreign, or approved nonprofit organizations using government            
      property.  Examples include Federal agencies of the U.S.                 
      Government, states, counties, cities, or other public                    
      authorities, international organizations, foreign governments or         
      foreign government agencies, and private organizations or                
      persons.  (This order does not include loan transactions between         
      FAA custodians.  See the latest version of Order 4650.2,                 
      Management and Control of In-Use Personal Property.)                     
                                                                               
          f.  Washington Program Offices.  Washington headquarters             
      offices and services having primary program management                   
      responsibility for national activities conducted by regions and          
      centers.                                                                 
                                                                               
          g.  Personal Property.  All tangible assets including                
      facilities and equipment (F&E) project materiel which is subject         
      to the ownership or under control of FAA and does not fit into           
      the definition of real property; movable objects not permanently         
      affixed to and a part of real property.                                  
                                                                               
          h.  Property Manager Officer (PMO).  The head of the FAA             
      headquarters or regional organizational element which has the            
      primary functional responsibility for the management and control         
      of property including the administration of FAA property loaned          
      to other organizations and property borrowed by FAA.                     
                                                                               
          i.  Property Custodian.  The person formally designated (by          
      the property manager) as being responsible for the management of         
      and control of property within a specified custodial area.               
                                                                               
          j.  Property Manager.  The head of the organizational element        
      which has the primary function for the management and control of         
      property within a region or center including the administration          
      of FAA property loaned to other organizations and property               
      borrowed by FAA.  Loan records for property borrowed by FAA for          
      the purpose of loaning it to a foreign government will be                
      maintained by headquarters property manager (normally, the NAS           
      Support Division, Material Management Branch, ASM-720) through           
      the Office of International Aviation, International Assistance           
      Division, AIA-200.                                                       
                                                                               
      7.  RESPONSIBILITIES.  The following responsibilities apply to           
      all property loan agreements, both foreign and domestic, except          
      those which require reimbursement.  Any property loan or                 
      interagency agreement that requires reimbursement shall be               
      prepared in accordance with this order and Order 2500.35.  An            
      eligibility determination for each receiving agency and an               
      inquiry of property availability will be made for each proposed          
      loan agreement by the following offices:                                 
                                                                               
          a.  Headquarters and/or regional/center/program offices              
      shall:                                                                   
                                                                               
              (1)  Delegate authority to negotiate or execute                  
      agreements in writing and shall be consistent with organizational        
      responsibilities in accordance with the FPMR and existing agency         
      policy prior to loaning or borrowing personal property.  Should          
      the terms of the agreement call for reimbursement to the FAA, the        
      delegation is limited to those individuals prescribed in Order           
      2500.35, paragraph 8.                                                    
                                                                               
              (2)  Ensure that all program office interagency loan             
      agreements are in compliance with existing agency regulations.           
                                                                               
              (3)  Ensure the accuracy of the shipment address for the         
      loaned equipment.                                                        
                                                                               
              (4)  Ensure that all loan agreements contain a payment           
      clause for packaging, handling, and transportation.                      
                                                                               
              (5)  Ensure that all property loan agreements specify the        
      loan duration time periods.  This period of time should not              
      exceed 1 year.                                                           
                                                                               
              (6)  Provide disposition instructions complete with              
      return shipment address to the transportation officer prior to           
      loan or borrowed agreement expiration date.                              
                                                                               
              (7)  Ensure that two copies of interagency property loan         
      agreements are provided to the Office of Information Technology          
      and two copies to Systems Maintenance Service property manager.          
                                                                               
              (8)  Monitor the use of nationally furnished F&E project         
      materiel used by the regions and centers for property loan               
      agreements assuring that such agreements do not cause derogation         
      to the agency's mission.                                                 
                                                                               
              (9)  Ensure that all property being loaned is                    
      accountable.                                                             
                                                                               
              (10)  Provide the appropriate property manager,                  
      Accounting Division, and when applicable, the Washington program         
      office executing the loan agreement, with documentation                  
      evidencing receipt of the property by the user agency when it            
      affects the shipment of FAA-loaned property.                             
                                                                               
          b.  The Office of Accounting shall:                                  
                                                                               
              (1)  Ensure that all loan agreements initiated by                
      headquarters, services, and/or regions/centers are in compliance         
      with agency's accounting policy.                                         
                                                                               
              (2)  Ensure that all loan agreements are executed in             
      accordance with the provisions of the Federal Aviation Act.              
                                                                               
              (3)  Maintain general ledger accounts for all                    
      headquarters office and service loan agreements citing borrowed          
      property.  (General ledger control of loaned and borrowed                
      property is the responsibility of the appropriate Accounting             
      Division serving the office maintaining the accountability               
      records.)                                                                
                                                                               
          c.  The Systems Maintenance Service shall:                           
                                                                               
              (1)  Develop and implement agency guidance, systems,             
      standards, and procedures relative to the management and control         
      of personal property loan agreements.                                    
                                                                               
              (2)  Ensure that applicable agency directives address all        
      legal, regulatory, and directive requirements for effective and          
      efficient management of personal property loan agreements.               
                                                                               
              (3)  Monitor the FAA's personal property loan agreements         
      program to ensure system integrity, effectiveness, and that loan         
      agreement transactions are recorded in Personal Property In-Use          
      Management System (PPIMS).                                               
                                                                               
              (4)  Evaluate the FAA's personal property loan agreements        
      to ensure compliance with this order.                                    
                                                                               
          d.  The regional property managers shall:                            
                                                                               
              (1)  Provide the Accounting Operations Division, AAA-            
      200, with a list identifying each property loan agreement, the           
      borrowing organization's name, the total dollar value of FAA-            
      owned personal property on loan as of the end of the period, and         
      the date of the last written certification 10 workdays prior to          
      the end of the fiscal year.                                              
                                                                               
              (2)  Assume responsibility for management, control, and          
      annual certification of all regional office property loan                
      agreements and loaned property listings.  The property manager is        
      authorized to inform the AAA-200 and is authorized to take               
      appropriate action to recover all loaned property if the                 
      borrowing organization does not comply with the certification            
      described in paragraph 7d(1).                                            
                                                                               
                NOTE:  Certification must be accomplished by                   
                a date mutually agreed upon between the                        
                property manager and the borrower supported                    
                by a list identifying each item on loan.  The                  
                list must reflect quantity, description, loan                  
                expiration date, value for each loaned item,                   
                and the total value of all items.                              
                                                                               
              (3)  Ensure that all loan agreements are executed in             
      accordance with the provisions of the Federal Aviation Act and           
      Order 2500.35 for budgetary aspects of reimbursable loan                 
      agreements.                                                              
                                                                               
              (4)  Ensure the validity of the loaned equipment shipping        
      address.                                                                 
                                                                               
              (5)  Provide disposition instructions and documentation          
      through the transportation officer, if required, for the return          
      of any loaned or borrowed property to the custody of the owner.          
      A copy of the documentation will be furnished to AAA-200.                
                                                                               
              (6)  Ensure that all loan agreements contain a payment           
      clause for packaging, handling, and transportation.                      
                                                                               
              (7)  Ensure that all loan agreements specify the loan            
      duration period not to exceed 1 year.                                    
                                                                               
              (8)  Transfer intra-agency item and financial                    
      accountability as required.                                              
                                                                               
              (9)  Coordinate and submit to headquarters program               
      offices any proposed property loan agreements with background            
      information that involves the use of any nationally furnished F&E        
      project materiel.                                                        
                                                                               
              (10)  Ensure that all legal requirements are in                  
      compliance with public laws, statutes, decisions, and internal           
      agency standards.  All loans must be properly documented and             
      contain specific terms and conditions that adequately protect the        
      Government and agency interests.                                         
                                                                               
              (11)  Ensure that financial accountability is                    
      accomplished for loaned and borrowed property in accordance with         
      agency regulations.                                                      
                                                                               
              (12)  Monitor the loan agreement expiration dates and the        
      return of property for all loaned or borrowed property                   
      agreements.                                                              
                                                                               
              (13)  Validate requirements to extend loan agreements            
      beyond 2 years.                                                          
              (14)  Ensure that all loan agreement extensions are to be        
      approved by the headquarters program offices, Office of                  
      International Aviation, regional administrators, and center              
      directors, or their designees, as appropriate, as to the scope of        
      the agreement.                                                           
                                                                               
          e.  The regional property custodian shall furnish to the             
      supporting Accounting Division and the supporting Logistics              
      Division (property manager) a list identifying each property loan        
      agreement, the borrowing organization's name, the total dollar           
      value of FAA-owned personal property on loan as of the end of the        
      period, and the date of the last written certification 20                
      workdays prior to the end of the fiscal year.  Annual                    
      certification is required of each borrowing organization for             
      verification of custody and accountability for all FAA property          
      furnished under property loan agreements.                                
                                                                               
          f.  The Office of International Aviation (AIA) shall:                
                                                                               
              (1)  Negotiate, execute, and administer agreements               
      providing for loan of property for the benefit of foreign and            
      international recipients.  These agreements require coordination         
      with foreign government agencies, international organizations,           
      and coordination with other federal agencies such as the                 
      Departments of State, Defense, and Commerce, the Agency for              
      International Development (AID); World Bank; and Export-Import           
      Bank (EXIM).                                                             
                                                                               
              (2)  Obtain concurrence from the Office of Chief Counsel         
      to ensure that all international loan agreements are in                  
      compliance with existing regulations and that both the FAA and           
      the receiving organization's interests are protected to the              
      fullest extent possible.                                                 
                                                                               
              (3)  Ensure that all documentation for loaned                    
      international and foreign property agreements reflect the                
      intended purpose for the property.  For example, if the loan is          
      required for a foreign government or equivalent, one copy of all         
      international or foreign loan agreements shall be provided to the        
      Washington headquarters property manager, International                  
      Assistance Division, and the Accounting Operations Division for          
      accountability of loaned property.                                       
                                                                               
              (4)  Ensure that foreign agencies or international               
      organizations are advised to return loaned property promptly at          
      the end of the loan agreement expiration date.                           
                                                                               
              (5)  Ensure that the executing office and/or program             
      office will review loan agreements prior to the expiration date.         
      The property manager will be promptly notified of any decision           
      that affects loan property status, such as, loan extensions,             
      permanent transfers, sales, loan returns, property location              
      changes, etc.                                                            
                                                                               
              (6)  Serve as focal point for guidance and coordination          
      of international property loan agreements by:                            
                                                                               
                   (a)  Maintaining foreign and domestic liaison with          
      the Department of State, embassies of foreign countries located          
      in the United States, the Agency for International Development           
      (AID), and other agencies engaged in international activities.           
                                                                               
                   (b)  Approving the need for FAA loans for                   
      international aviation assistance programs and obtaining loan            
      requirements from foreign governments.                                   
                                                                               
                   (c)  Negotiating and signing international loan             
      agreements for transferring or loaning FAA property.                     
                                                                               
              (7)  Ensure that all loan agreement extensions are               
      reviewed in ample time prior to the expiration date to allow             
      consideration by the foreign agency or international                     
      organizations.                                                           
                                                                               
      8.  LOAN AGREEMENT PREREQUISITES.  Prior to execution of an              
      agreement, a formal request containing the following information         
      will be obtained from an authorized official of the element              
      desiring the use of FAA property:                                        
                                                                               
          a.  Complete description of the property desired.                    
                                                                               
          b.  Use to be made of property.                                      
                                                                               
          c.  Location at which property will be used.                         
                                                                               
          d.  Proposed duration of loan (not to exceed 1 year).                
                                                                               
          e.  Name and address of party requesting loan of property.           
                                                                               
          f.  Shipping information including concurrence of the                
      borrower to bear costs of packing, crating, and transportation.          
                                                                               
          g.  Intent of borrower to return property in same condition          
      as furnished, fair wear and tear excepted.                               
                                                                               
      9.  INTERAGENCY LOAN AGREEMENTS.  All agreements shall specify           
      the duration of the loan.  Interagency agreements shall be               
      prepared in accordance with the sample format in Appendix 1,             
      Sample Format for Interagency Loan Agreements.  Agreements               
      covering use of equipment involving a continuous long-range              
      requirement will cover only that time required for FAA to acquire        
      replacement items.                                                       
                                                                               
          a.  Each determination will be supported by a record in the          
      file establishing the basis for the determination.  The following        
      determinations will be made and documented prior to executing            
      loan agreements:                                                         
                                                                               
              (1)  Property managers are authorized to loan FAA                
      property if it does not derogate the FAA's mission and associated        
      National Airspace System programs.                                       
                                                                               
              (2)  The regional property manager will ensure that the          
      loaned property will benefit civil aviation or the public                
      interest.                                                                
                                                                               
              (3)  The regional property manager will ensure that the          
      borrower will encourage and foster the development of civil              
      aviation and air commerce in the United States and abroad.               
                                                                               
          b.  The regional property manager will ensure that all               
      interagency loan agreements initiated by the regions will be in          
      compliance with agency regulations.                                      
                                                                               
          c.  Before an interagency agreement is executed, the Office          
      of Budget and the Office of the Chief Counsel shall affirm that          
      authority and funds are available.                                       
          d.  All loan agreements are to be approved by the                    
      headquarters program offices, Office of International Aviation,          
      regional administrators, and center directors, or their                  
      designees, as appropriate, as to the scope of the agreement.             
                                                                               
          e.  Inquiries concerning FAA property will be directed to the        
      FAA element responsible for negotiating, executing, and                  
      administering agreements for the type of property involved.              
                                                                               
      10.  EMERGENCY LOANS.  In emergency situations, FAA property is          
      authorized for loan to domestic governments without a loan               
      agreement but only for a specified period of time until a loan           
      agreement can be executed.  Property loaned under this authority         
      will be transferred on a properly executed transfer document             
      which states:  EMERGENCY LOAN NOT TO EXCEED _____ DAYS.  LOAN            
      AGREEMENT TO FOLLOW.                                                     
                                                                               
      11.  LOAN AGREEMENTS WITH FOREIGN PARTIES AND GOVERNMENTS.               
                                                                               
           a.  Loan Agreement Standards.                                       
                                                                               
               (1)  The basic authorities for transfer or loan of FAA          
      property to foreign parties are listed in paragraph 5.                   
                                                                               
               (2)  The Office of International Aviation is the focal          
      point within FAA for guidance and coordination of international          
      agreements and associated activities.                                    
                                                                               
               (3)  FAA excess property shall be made available to all         
      international assistance programs to the fullest extent possible         
      in accordance with the procedures contained in the latest version        
      of Order 4800.2, Utilization and Disposal of Excess and Surplus          
      Personal Property.                                                       
                                                                               
               (4)  FAA nonexcess property may be utilized from agency         
      resources or FAA may borrow property for the purpose of loaning          
      it to a foreign government.  Prior to consummating any loan              
      agreements for nonexcess property, the Office of International           
      Aviation shall make the same determination as those prescribed           
      for domestic agreements.                                                 
                                                                               
          b.  Other.  In addition to loan agreements, other types of           
      agreements entered into by the Office of International Aviation          
      include, but may not be limited to, those for air navigation,            
      facility flight inspection, services, and procurement.                   
                                                                               
      12.  REVOCABLE PERMITS WITH PRIVATE PARTIES.                             
                                                                               
           a.  Comptroller General and Attorney General decisions have         
      been used, in the absence of expressed statutory authority, as           
      authority to loan public property to private parties.  These             
      decisions have held, generally, that:                                    
                                                                               
               (1)  The head of a Government department or agency has          
      authority to grant a private individual or business a revocable          
      permit to use Government property provided that such use does not        
      damage the property and serves some purpose useful or beneficial         
      to the Government.  The permit is subject to termination at any          
      time by the Government.                                                  
                                                                               
               (2)  The granting of a revocable permit should not be           
      construed as alienation of title, ownership, or control of               
      Government property in violation of the constitutional                   
      prohibition.                                                             
                                                                               
           b.  Private parties shall request the use of FAA property in        
      writing.  Approval or disapproval shall be based upon the                
      merit(s) of the individual request, availability of the property,        
      and the impact the loan has upon agency programs.                        
                                                                               
           c.  FAA private-party permits for Government property shall         
      contain, but not necessarily be limited to, provisions stating           
      that:                                                                    
                                                                               
               (1)  Title to property and all vested rights shall be           
      retained by the Government.                                              
                                                                               
               (2)  The use of property granted by the permit is               
      temporary.                                                               
                                                                               
               (3)  Property shall be returned to Government in the            
      same serviceable condition as when received (fair wear and tear          
      excepted).                                                               
                                                                               
               (4)  Use of property must be beneficial to Government.          
                                                                               
               (5)  Property permit is revocable by the Government at          
      any time and that the user shall not represent its use of the            
      property as being for or on behalf of the Government nor in any          
      way represent that the user is acting for in the name of or on           
      behalf of the U.S. Government.  (See Appendix 2, Checklist --            
      Revocable Permit with Private Parties.)                                  
                                                                               
           d.  The approval level for revocable permits with private           
      parties is the same as that prescribed for loan agreements in            
      paragraph 9b.                                                            
                                                                               
      13.  EXCEPTIONS.  All FAA personal property, with the exception          
      of excess property, that has been reported to the General                
      Services Administration (GSA), may be loaned if the requesting           
      agency is determined to be eligible.  If excess property is to be        
      utilized by the prospective borrowing agency, then the procedures        
      contained in Order 4800.2 and FPMR shall apply.                          
                                                                               
      14.  SUPPLY SUPPORT AND MAINTENANCE FOR LOANED PROPERTY.  The            
      borrowing organization is responsible for providing supply               
      support, maintenance, and associated services for property loan          
      agreements.  Property loan agreements must document the                  
      responsible organization for these services; and, if                     
      reimbursement is required, the agreement must state so and comply        
      with Order 2500.35.                                                      
                                                                               
      15.  LOANED PROPERTY AGREEMENT DISPOSAL.  At the end of the loan         
      expiration period, property managers shall make the following            
      disposal determinations:                                                 
                                                                               
           a.  Whether or not it is beneficial and cost effective to           
      return the property to the agency.                                       
                                                                               
           b.  Whether or not the loaned property should be provided           
      through the grant program.                                               
                                                                               
           c.  Whether or not the loaned property should be disposed of        
      at the site of the loaned property.  All loaned property returns         
      shall comply with the procedures defined in Order 4800.2 to the          
      fullest extent possible.                                                 
                                                                               
      /s/ Carlisle C. Cook Jr.                                                 
      for Arnold Aquilano                                                      
          Associate Administrator for Airway Facilities                        
                                                                               
                                                                               
         APPENDIX 1.  SAMPLE FORMAT FOR INTERAGENCY LOAN AGREEMENTS            
                                                                               
      WHEREAS equipment owned by the United States and now in the              
      custody of the Federal Aviation Administration is listed as              
      follows:                                                                 
                                                                               
           Include the following information for each line item of             
      equipment:                                                               
                                                                               
           1.  National Stock Number (if available).                           
                                                                               
           2.  Complete Description, including condition code.                 
                                                                               
           3.  Quantity.                                                       
                                                                               
           4.  Unit Price.                                                     
                                                                               
           5.  Total Value.                                                    
                                                                               
      and, WHEREAS, (cite borrower) desires to utilize the above               
      equipment on a loan basis at (cite location) to (cite use of             
      property).  Now, therefore, pursuant to the authority vested in          
      the Administrator under the Federal Aviation Act of 1958, as             
      amended, the Federal Aviation Administration, hereinafter                
      referred to as the Permitter, hereby grants to (cite borrower)           
      hereinafter referred to as the Permittee, the custody and                
      possession of the equipment as set forth above for a period of           
      (cite duration of loan not to exceed 1 year) from the date of            
      execution of this agreement by the Permittee, subject to the             
      following terms and conditions:                                          
                                                                               
           1.  This agreement may be terminated at any time by the             
      Permitter and may be terminated by the Permittee at any time upon        
      furnishing 30 days written notice to the Permitter.                      
                                                                               
           2.  The costs of packing, crating, and transportation of            
      said property from (cite location in FAA) will be borne by the           
      Permittee.  The Permitter may provide packing and crating                
      services.  The (cite FAA billing office) will bill the Permittee         
      for reimbursement in accordance with instructions provided by the        
      Permittee.                                                               
                                                                               
           3.  Permittee assumes responsibility for property upon              
      receipt of equipment by either the Permittee (or his agent)              
      (commercial carrier or other designee).                                  
                                                                               
           4.  Permittee agrees not to alter the basic configuration of        
      said equipment unless authorized by the Permitter, such                  
      authorization to be included as a separate condition of the              
      agreement.                                                               
                                                                               
           5.  The Permittee agrees to: ____________________________           
                                                                               
               a.  Maintain said equipment in proper operating                 
      condition at all times.  Perform such repairs and replacements as        
      may be needed at no expense to the Permitter.  Permit the                
      Permitter to inspect said equipment at any time during the period        
      of the loan agreement.                                                   
                                                                               
               b.  Assume the liabilities, responsibilities, and costs         
      incurred arising from the operation or use of said equipment             
      during the period of the loan agreement.                                 
                                                                               
                NOTE:  Agreements with non-United States                       
                Government organizations will include a                        
                provision that the U.S. Government is not                      
                liable for, and will be indemnified against                    
                any claim for, injury or death of persons, or                  
                damage to property incident to use of said                     
                equipment.                                                     
                                                                               
           6.  Upon expiration or termination of this agreement, the           
      Permittee will return said equipment at no expense to the                
      Permitter to (cite shipping address).                                    
                                                                               
           7.  The Permitter may consider a written request by the             
      Permittee to extend this agreement beyond its expiration date.           
      Loan extensions and any other change to the contents of this             
      document will be formalized by an appropriate written amendment          
      which outlines in detail the exact nature of the change.                 
                                                                               
           8.  The Permitter and Permittee agree to the terms of this          
      agreement as indicated by the signature of the duly authorized           
      officials as of the dates shown below each signature.  The               
      effective date of this agreement is the date the Permittee or his        
      agent receives said equipment at _______________________________.        
                                                                               
      PERMITTER                          PERMITTEE                             
                                                                               
      By ______________________________  _____________________________         
                                                                               
      Title ___________________________  _____________________________         
                                                                               
      Date ____________________________  _____________________________         
                                                                               
                                                                               
       APPENDIX 2.  CHECKLIST - REVOCABLE PERMIT WITH PRIVATE PARTIES          
                                                                               
      1.  Parties to permit (FAA element and name and address of               
      private party).                                                          
                                                                               
      2.  Purpose of permit (cite benefits to Government either in             
      permit itself or as a written administrative determination filed         
      in loan file).                                                           
                                                                               
      3.  Description (make, model, serial number), price, quantity,           
      and condition code of property loaned.                                   
                                                                               
      4.  Duration of permit.                                                  
                                                                               
      5.  Borrower's responsibility to use property only at location           
      and for purpose specified in permit, to return property in the           
      same condition as received (fair wear and tear excepted), and            
      responsibility for all damage to or loss of property until               
      returned to FAA.                                                         
                                                                               
      6.  Borrower's responsibility for transportation charges during          
      duration of permit.                                                      
                                                                               
      7.  A statement that the permit is revocable at any time by FAA          
      and that, if revoked, the private party shall return the property        
      to FAA upon demand.                                                      
                                                                               
      8.  A clause that the borrower agrees to hold FAA harmless from          
      all liability arising from borrower's use or custody of property         
      listed in the permit.                                                    
                                                                               
      9.  Identification of billing office (if applicable).  Method and        
      frequency of billing.                                                    
                                                                               
      10.  Signature and title of FAA approving official and of                
      borrower's approving official and date of approval by each               
      official.