TITLE 20 - US CODE - CHAPTER 26A - INDEMNITY FOR EXHIBITIONS OF ARTS AND ARTIFACTS

20 USC 971 - Agreements to indemnify against loss or damage

(a) Authorization of Federal Council on the Arts and Humanities 
The Federal Council on the Arts and Humanities (hereinafter in this chapter referred to as the Council), established under section 958 of this title, is authorized to make agreements to indemnify against loss or damage such items as may be eligible for such indemnity agreements under section 972 of this title
(1) in accordance with the provisions of this chapter; and
(2) on such terms and conditions as the Council shall prescribe, by regulation, in order to achieve the purposes of this chapter and, consistent with such purposes, to protect the financial interest of the United States.
(b) Council as “agency” 


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(1) For purposes of this chapter, the Council shall be an agency within the meaning of the appropriate definitions of such term in title 5.
(2) For purposes of this chapter, the Secretary of the Smithsonian Institution, the Director of the National Gallery of Art, the member designated by the Chairman of the Senate Commission of Art and Antiquities and the member designated by the Speaker of the House of Representatives shall not serve as members of the Council.

20 USC 972 - Items eligible for indemnity agreements

(a) Works of art; printed or published materials; other artifacts or objects; photographs, motion pictures, or tapes 
The Council may make an indemnity agreement under this chapter with respect to
(1) works of art, including tapestries, paintings, sculpture, folk art, graphics, and craft arts;
(2) manuscripts, rare documents, books, and other printed or published materials;
(3) other artifacts or objects; and
(4) photographs, motion pictures, or audio and video tape;

which are

(A)  of educational, cultural, historical, or scientific value, and
(B)  in the case of international exhibitions, certified by the Secretary of State or his designee as being in the national interest.
(b) Extension of coverage; “on exhibition” defined 

(1) An indemnity agreement made under this chapter shall cover eligible items while on exhibition in the United States or elsewhere preferably when part of an exchange of exhibitions.
(2) For purposes of this subsection, the term on exhibition includes that period of time beginning on the date the eligible items leave the premises of the lender or place designated by the lender and ending on the date such items are returned to the premises of the lender or place designated by the lender.

20 USC 973 - Application for indemnity agreements

(a) Parties 
Any person, nonprofit agency, institution, or government desiring to make an indemnity agreement for eligible items under this chapter shall make application therefor in accordance with such procedures, in such form, and in such manner as the Council shall, by regulation, prescribe.
(b) Contents 
An application under subsection (a) of this section shall
(1) describe each item to be covered by the agreement (including an estimated value of such item);
(2) show evidence that the items are eligible under section 972 (a) of this title; and
(3) set forth policies, procedures, techniques, and methods with respect to preparation for, and conduct of, exhibition of the items, and any transportation related to such items.
(c) Approval 
Upon receipt of an application under this section, the Council shall, if such application conforms with the requirements of this chapter, approve the application and make an indemnity agreement with the applicant. Upon such approval, the agreement shall constitute a contract between the Council and the applicant pledging the full faith and credit of the United States to pay any amount for which the Council becomes liable under such agreement. The Council, for such purpose, is hereby authorized to pledge the full faith and credit of the United States.

20 USC 974 - Indemnity limits

(a) Approval of estimated values 
Upon receipt of an application meeting the requirements of subsections (a) and (b) of section 973 of this title, the Council shall review the estimated value of the items for which coverage by an indemnity agreement is sought. If the Council agrees with such estimated value, for the purposes of this chapter, the Council shall, after approval of the application as provided in subsection (c) of section 973 of this title, make an indemnity agreement.
(b) Maximum limits of coverage 
The aggregate of loss or damage covered by indemnity agreements made under this chapter shall not exceed $10,000,000,000 at any one time for international exhibitions, and $5,000,000,000 at any one time for domestic exhibitions.
(c) Limit for single exhibition 
No indemnity agreement for a single exhibition shall cover loss or damage in excess of $1,200,000,000 for international exhibitions, or $750,000,000 for domestic exhibitions.
(d) Deductible limit 
If the estimated value of the items covered by an indemnity agreement for a single exhibition is
(1) $2,000,000 or less, then coverage under this chapter shall extend only to loss or damage in excess of the first $15,000 of loss or damage to items covered;
(2) more than $2,000,000 but less than $10,000,000 then coverage under this chapter shall extend only to loss or damage in excess of the first $25,000 of loss or damage to items covered;
(3) not less than $10,000,000 but less than $125,000,000, then coverage under this chapter shall extend to loss or damage in excess of the first $50,000 of loss or damage to items covered;
(4) not less than $125,000,000 but less than $200,000,[1] then coverage under this chapter shall extend to loss or damage in excess of the first $100,000 of loss or damage to items covered;
(5) not less than $200,000,000 but less than $300,000,000, then coverage under the[2] chapter shall extend only to loss or damage in excess of the first $200,000, of loss or damage to items covered;
(6) not less than $300,000,000 but less than $400,000,000, then coverage under this chapter shall extend only to loss or damage in excess of the first $300,000 of loss or damage to items covered;
(7) not less than $400,000,000 but less than $500,000,000, then coverage under this chapter shall extend only to loss or damage in excess of the first $400,000 of loss or damage to items covered; or
(8) $500,000,000 or more, then coverage under this chapter shall extend only to loss or damage in excess of the first $500,000 of loss or damage to items covered.
[1] So in original. Probably should be “$200,000,000,”.
[2] So in original. Probably should be “this”.

20 USC 975 - Claims for losses

(a) Regulations for prompt adjustment 
The Council shall prescribe regulations providing for prompt adjustment of valid claims for losses which are covered by an agreement made pursuant to section 974 of this title, including provision for arbitration of issues relating to the dollar value of damages involving less than total loss or destruction of such covered objects.
(b) Certification 
In the case of a claim of loss with respect to an item which is covered by an agreement made pursuant to section 974 of this title, the Council shall certify the validity of the claim and the amount of the loss to the Speaker of the House of Representatives and the President pro tempore of the Senate.

20 USC 976 - Authorization of appropriations

There are hereby authorized to be appropriated such sums as may be necessary
(1)  to enable the Council to carry out its functions under this chapter, and
(2)  to pay claims certified pursuant to section 975 (b) of this title.

20 USC 977 - Omitted