DA Form 4881 Agreement for the Loan of Us Army Materiel

DA Form 4881 - also known as the "Agreement For The Loan Of Us Army Materiel" - is a United States Military form issued by the Department of the Army.

The form - often mistakenly referred to as the DD form 4881 - was last revised on July 1, 2004. Download an up-to-date fillable PDF version of the DA 4881 down below or look it up on the Army Publishing Directorate website.

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AGREEMENT FOR THE LOAN OF US ARMY MATERIEL
For use of this form, see AR 700-131; the proponent agency is DCS, G-4.
This form will be used to enter into agreements relative to the loan of Army materiel between the United States
Army and -
1. Non-DOD Federal departments and agencies.
2. Civilian activities specifically authorized to receive Army materiel on loan. Paragraphs below are applicable
to cases, as cited above, unless otherwise specified at the beginning of each paragraph.
This loan agreement is entered into, by, and between the United States of America, hereinafter called "the
lender," represented by (b)
for the purpose of entering into this agreement; and (a)
hereinafter called "the borrower," represented by (c)
for the purpose of entering into this agreement.
1. PURPOSE. Under the authority of (d)
the lender hereby lends to the borrower and the borrower hereby borrows from the lender the Government
materiel, hereinafter called "the materiel," listed and described in Exhibit I hereto attached and incorporated by
reference into the terms of this agreement, which materiel is required by the borrower for (e)
2. TERM. This loan of materiel is intended to meet a temporary need covered by federal law. The borrower will
keep the materiel only for the period of (f)
. Loans may be renewed, if
justified, and requested by the borrower and approved by the lender. Nevertheless, the lender may revoke and
terminate this agreement and demand return of the materiel in whole or in part at any time.
3. CONDITIONS. This agreement is predicated upon the following conditions:
a. The lender will make every effort to ensure that each item of the materiel is furnished to the borrower in a
serviceable and usable condition according to its originally intended purpose. However, if the use for which the
materiel is loaned will permit, materiel of a lesser condition will be loaned. This lesser condition will be noted on
the appropriate loan documents. Nevertheless, the lender makes no warranty or guarantee of fitness of any of
the materiel for a particular purpose or use; or warranty of any type whatsoever.
b. The borrower will appoint a representative for the purpose of making a joint inspection and inventory of all
materiel when the borrower physically picks up or returns the borrowed materiel. Upon pickup (or receipt after
shipment) of the borrowed materiel, the accountable property officer of the borrowing activity
(or his authorized
representative)
will sign the appropriate documents acknowledging receipt and possession of the materiel. Upon
return of the materiel to the Army, the borrower will certify that "the quantities listed in the shipping documents(s)
are correct." In instances where borrower representatives authorized to receive and sign for borrowed materiel,
are not available when the materiel is delivered, all claims for costs related to the loan will be valid.
c. The borrower is responsible for care and maintenance of borrowed materiel during the term of the loan. The
borrower will provide sufficient personnel and facilities to adequately operate, maintain, protect, and secure the
borrowed materiel. The borrower will maintain the materiel in a serviceable condition and ascertain that it is
returned to the Army in as good a condition as when it was loaned (fair wear and tear excepted).
Records of
maintenance performed will be kept and returned to the Army with the borrowed materiel. (NOTE: When
appropriate, the borrowing activity will place the materiel in a "properly preserved" status prior to or upon
return.)
DA FORM 4881, JUL 2004
DA FORM 4881-R, JUL 1996, IS OBSOLETE
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APD LC v1.02ES
AGREEMENT FOR THE LOAN OF US ARMY MATERIEL
For use of this form, see AR 700-131; the proponent agency is DCS, G-4.
This form will be used to enter into agreements relative to the loan of Army materiel between the United States
Army and -
1. Non-DOD Federal departments and agencies.
2. Civilian activities specifically authorized to receive Army materiel on loan. Paragraphs below are applicable
to cases, as cited above, unless otherwise specified at the beginning of each paragraph.
This loan agreement is entered into, by, and between the United States of America, hereinafter called "the
lender," represented by (b)
for the purpose of entering into this agreement; and (a)
hereinafter called "the borrower," represented by (c)
for the purpose of entering into this agreement.
1. PURPOSE. Under the authority of (d)
the lender hereby lends to the borrower and the borrower hereby borrows from the lender the Government
materiel, hereinafter called "the materiel," listed and described in Exhibit I hereto attached and incorporated by
reference into the terms of this agreement, which materiel is required by the borrower for (e)
2. TERM. This loan of materiel is intended to meet a temporary need covered by federal law. The borrower will
keep the materiel only for the period of (f)
. Loans may be renewed, if
justified, and requested by the borrower and approved by the lender. Nevertheless, the lender may revoke and
terminate this agreement and demand return of the materiel in whole or in part at any time.
3. CONDITIONS. This agreement is predicated upon the following conditions:
a. The lender will make every effort to ensure that each item of the materiel is furnished to the borrower in a
serviceable and usable condition according to its originally intended purpose. However, if the use for which the
materiel is loaned will permit, materiel of a lesser condition will be loaned. This lesser condition will be noted on
the appropriate loan documents. Nevertheless, the lender makes no warranty or guarantee of fitness of any of
the materiel for a particular purpose or use; or warranty of any type whatsoever.
b. The borrower will appoint a representative for the purpose of making a joint inspection and inventory of all
materiel when the borrower physically picks up or returns the borrowed materiel. Upon pickup (or receipt after
shipment) of the borrowed materiel, the accountable property officer of the borrowing activity
(or his authorized
representative)
will sign the appropriate documents acknowledging receipt and possession of the materiel. Upon
return of the materiel to the Army, the borrower will certify that "the quantities listed in the shipping documents(s)
are correct." In instances where borrower representatives authorized to receive and sign for borrowed materiel,
are not available when the materiel is delivered, all claims for costs related to the loan will be valid.
c. The borrower is responsible for care and maintenance of borrowed materiel during the term of the loan. The
borrower will provide sufficient personnel and facilities to adequately operate, maintain, protect, and secure the
borrowed materiel. The borrower will maintain the materiel in a serviceable condition and ascertain that it is
returned to the Army in as good a condition as when it was loaned (fair wear and tear excepted).
Records of
maintenance performed will be kept and returned to the Army with the borrowed materiel. (NOTE: When
appropriate, the borrowing activity will place the materiel in a "properly preserved" status prior to or upon
return.)
DA FORM 4881, JUL 2004
DA FORM 4881-R, JUL 1996, IS OBSOLETE
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APD LC v1.02ES
d. The borrower will store, safeguard, and secure high value items, or arms in a manner consistent with
common practice, public law, and local ordinances.
e. The borrower will prevent misuse of borrowed materiel; or its use by unauthorized persons.
f. The borrower will neither make nor permit any modification or alteration of any borrowed materiel except with
permission of the approving authority for the loan.
g. The borrower will not mortgage, pledge, assign, transfer, sublet, or part with possession of any borrowed
materiel in any manner to any third party either directly or indirectly except with the prior written approval of the
lender.
h. At all times the lender shall have free access to all loaned materiel for the purpose of inspecting or
inventorying it.
i. The borrower will return borrowed materiel to a location designated by the lender when the materiel is no
(including any approved extension);
longer needed; upon termination of the loan period
or upon demand
therefore by the lender. The lender will provide documents to be used by the borrower to return the materiel.
j. (Applicable to agreements involving the loan of an Army building.)
The building will not be moved. Upon
termination of its use, the borrowing activity will vacate the premises, remove its own property therefrom, and turn
in all Government property.
4. PAYMENT. The borrower will reimburse the lender for expenses incurred in connection with this loan as
provided below:
a. (Applicable to loan agreements with civil authorities - except for FEMA requested disaster assistance -
and civilian activities only.)
Before delivery of any materiel by the lender, the borrower will post with the
approving authority a surety bond and a certified bank check, US Treasury bonds, or bonding company bond in
the amount of the total value of the materiel as shown in Exhibit I (See paragraphs 2-8 a(2)(a) and 2-8 a(2)(b).
AR 700-131, for exceptions where a "double bond" is required.) The bond, marked Exhibit II
(properly executed
surety bond and evidence of deposit with the approving authority of certified check, United States of America
Treasury bonds, or bonding company bond in the amount of the grand total shown on ExhibitI), is hereto
attached and incorporated by reference into the terms of this agreement.
b. (Applicable to loan agreements with civil authorities - except for FEMA requested disaster assistance -
and civilian activities only.) Should the borrower fail to return any of the borrowed materiel or fail to reimburse
the lender within 30 days after receiving a request for payment of expenses, the bond shall be forfeited as
liquidated damages in an amount equal to the expenses, the bond shall be forfeited as liquidated damages in an
amount equal to the expenses to the Government.
c. (Applicable to loan agreements with civil authorities - except for FEMA requested disaster assistance -
and civilian activities only.) Payment of liquidated damages by forfeiture of any portion of the bond to the
Government shall not operate as a sale to the borrower of any of the materiel available to be returned, but not
returned to the lender, nor to extinguish the lender's right to have the available missing materiel returned. Should
the borrower later return to the lender any of the missing materiel on account of which a portion of the bond was
forfeited as liquidated damages, the borrower shall be entitled to recoup from the lender a sum equal to 90
percent of the price of the returned materiel as shown on Exhibit I, less an amount in payment for expenses, if
any, computed in accordance with Chapter 5, AR 700-131, and less an amount for depreciation.
DA FORM 4881, JUL 2004
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d. (Applicable to loan agreements with civil authorities and civilian activities only.) If the normal life
expectancy of borrowed materiel can be determined by reference to applicable military publications, the amount
to be assessed for depreciation shall be computed by the straight line method using the price shown on Exhibit I
and the date of expiration or termination of this loan as initial points. When normal life expectancy is not
established by applicable military publications, the amount for depreciation shall be computed by the same
method, applying a uniform depreciation rate of 50 percent per annum.
e. (Applicable to loan agreements with civil authorities and civilian activities only.)
The borrower will assume
all responsibility for Army claims arising from the possession, use, or transportation of the borrowed materiel, and
agrees to hold the lender harmless from any such claims and liability.The borrower will protect the interest of the
lender by procuring comprehensive insurance for all borrowed materiel to include coverage for liability, property
damage, fire, and theft, and deductible collision insurance for motorized vehicles. The borrower will file duplicate
copies of such insurance policy(ies)
with the lender and prepare accident reports in accordance with existing
laws and local ordinances.
f. The borrower will bear the cost of pickup and return of borrowed materiel; and, will reimburse the lender for
costs incurred incident to packing, crating, handling, movement, and transportation of the materiel.
g. The borrower will reimburse the lender for any expenses necessary to repair, rehabilitate, or preserve the
materiel following its return to the lender. (NOTE. Of any borrowed materiel, unless depreciation is significant.)
h. The borrower will reimburse the lender (as indicated and at the price shown on Exhibit I) for the cost of all
of the expendable materiel (including, but not limited to, petroleum, oil, and other lubricants)
used or consumed
during this loan.
i. The borrower will reimburse the lender for costs incident to the pay of Army personnel who may be
temporarily required to operate, maintain, guard, or otherwise attend to borrowed Army materiel. This includes
travel and per diem costs for both Army uniformed and civilian personnel and regular salary and overtime costs
for Army civilian.
j. The borrower will reimburse the lender for any other expense to the lender arising in connection with the loan
of Army materiel.
k. (Applicable to loan agreements with Federal departments and agencies only.) The lender will indicate the
specific accounting classification(s) against which any charges as enumerated above will be charged.
5. OFFICIALS NOT TO BENEFIT. No member or delegate to Congress shall be admitted to any share or part of
this loan or to any benefit arising in connection with it.
6. CONTINGENCY FEES. No person or agency acting for or on behalf of the borrower to solicit or obtain this
loan shall be paid any commission, percentage, brokerage, or contingent fee in any way connected with this
loan.
7. DISPUTES. Any disputes concerning a question or fact arising under this loan agreement which are not
mutually disposed of by the lender and the borrower shall be decided by the Secretary of the Army as the
Government's Executive Agency, or by his designee.
8. REPAIR PARTS. (Select applicable response)
a. Repair parts may be obtained by purchase from commercial sources.
DA FORM 4881, JUL 2004
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(DRMO),
b. Repair parts may be obtained by purchase through a Defense Reutilization Management Office
at no cost to the Government, in the same manner as authorized the general public, or by transfer from a DRMO
authorized by AR 755-2.
c. Repair parts may be obtained from the lender by Supply Support Agreement (DD FORM 1144).
9. REVOCATION RIGHTS. The lender reserves the right to revoke all or any part of this agreement at any time.
This materiel is loaned with the stipulation that it may be immediately recalled in support of DOD worldwide
operational requirements.
10. INVESTIGATION AND REPORTING OF MISHAPS. (Select applicable response)
a. Equipment loaned to Army activities: The borrower will be held accountable and responsible for all
equipment mishaps from the time of pickup or delivery, and will report all mishaps in accordance with AR 385-40.
The lender will have access to any accident investigation proceedings and a copy of any accident investigation
report will be forwarded to Commander, United States Army
.
Command, ATTN:
b. Equipment loaned to DOD activities: The borrower will assume full responsibility for all mishaps from the
time of pickup or delivery. Reporting and investigation of all mishaps will be accomplished IAW the appropriate
regulations of the borrower. The commander, United States Army
Command, ATTN:
will receive preliminary notification of any mishap, and, upon
request, will receive a copy of the completed report.
c. Equipment loaned to non-DOD activities: Accident investigation will be accomplished in accordance with
appropriate regulations and procedures of the borrower. The lender will have access to any accident
investigation proceedings and a copy of any accident investigation report will be forwarded to Command, United
States Army
Command, ATTN:
.
Done at (g)
this
.
TYPED NAME, GRADE/RANK OF ARMY APPROVING
SIGNATURE OR APPROVING AUTHORITY OR DESIGNEE
AUTHORITY FOR THE LOAN, OR HIS DESIGNEE
TYPED NAME OF CHIEF EXECUTIVE OR HIS AUTHORIZED
SIGNATURE OF CHIEF EXECUTIVE OR DESIGNEE
DESIGNEE OF THE BORROWING AGENCY OR ACTIVITY
DA FORM 4881, JUL 2004
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