The additional provision, novena, of Law 16/1985, of 25 June, of the Spanish Historical Heritage, introduced by the additional provision of Law 37/1988, of December 28, of General State Budgets for 1989, institutes "the guarantee of the State for works of cultural interest" and enables the Ministers of Culture and Economy and Finance to propose the Royal Decree by which the procedure and requirements for the granting of this commitment are regulated and how to make it effective in your case.

In its virtue, on the proposal of the Ministers of Culture and of Economy and Finance, in agreement with the Council of State and after deliberation of the Council of Ministers at its meeting of November 15, 1991,

DISPONGO:

Article 1. °

1. In accordance with the provisions of the additional provision, ninth of Law 16/1985, of 25 June, of the Spanish Historical Heritage, the State may undertake to indemnify for the destruction, loss, subtraction or damage of those works of relevant artistic, historical, paleontological, archaeological, ethnographic, scientific or technical interest that are transferred, temporarily or definitively, to Museums, Libraries or Archives for public contemplation.

2. The cumulative amount of the commitments granted in each year by the State shall not exceed the limit to the effect set forth in the General State Budget Law for that year.

Art. 2. °

1. The Ministry of Culture may ask the Ministry of Culture to grant the State guarantee for works of relevant cultural interest, the Museums, Libraries and Archives of public or private ownership of the works referred to in paragraph 1. of the previous article.

2. The application shall contain the following data:

a) Duration of the exhibition and place of the exhibition.

b) Description of the works, justifying their relevant artistic, cultural, scientific or technical interest.

c) Value of each of the works declared by the transferor and accepted by the Director of the institution that formulates the application. In the event of an intervention by appraisers or experts, a copy of the assessment made by them shall be attached.

d) Procedures intended to carry out the reports on the conservation status of the works prior to their delivery to the transferee institution and at the time of their return to the transferor.

e) Conservation and safety measures in the packaging, transport and during the exhibition of the works, with an express mention of the maximum value of the works to be carried in a single transport.

(f) Insurance contracted, or planned to be contracted, to cover the amounts not covered by the guarantee in accordance with Article 6. 2 of this Royal Decree, as well as other guarantees analogous to the state granted, if any, by other Public Administrations.

3. The requesting institution shall provide written notice of the agreement of the transferor of the work on the ends contained in the application as well as the express submission of this to the present Royal Decree and other rules of the guarantee of the State for works of cultural interest.

4. The Directorate-General for Fine Arts and Archives shall consult the competent authority of the Autonomous Community in respect of requests made by the Museums, Libraries and Archives located in its territorial area, which are not managed by the Administration of the State and its Autonomous Bodies.

Art. 3. °

1. The Directorate-General for Fine Arts and Archives shall, where appropriate, transfer to the institution the necessary additional conditions which it considers relevant for the purposes of writing its conformity with them.

2. The Board of Qualification, Valuation and Export of Property of the Spanish Historical Heritage, will advise on the issues that in this matter are consulted by the Director General of Fine Arts and Archives.

3. The Directorate General of Fine Arts and Archives will report the requests for the State guarantee for works of relevant cultural interest and, if necessary, propose to the Minister of Culture the granting of these commitments.

4. The Order granting the guarantee shall express the commitment of the State to compensate for the destruction, loss, theft or damage of the works mentioned in the application, in accordance with the values and conditions expressed in the which shall be included, where appropriate, the additional referred to in point 1 of this Article.

Art. 4. °

1. The granting of the State guarantee obliges the institution to cease to observe how much is established in the Order of Grant itself.

2. In addition, in the event of destruction, loss, subtraction or damage of a work, the transferee institution shall:

a) Immediately communicate to the Ministry of Culture this event, with detailed information on its circumstances and consequences.

b) Adopt the necessary measures to minimize the effects of the same.

Art. 5. °

The State guarantee does not cover the destruction, loss, theft or damage of works due to:

a) Self-service or intrinsic quality of the object of the guarantee.

b) The simple passage of time.

c) The deliberate action or omission of the work's transferor, its employees or agents.

d) Seizure, retention, seizure of the work or similar measure, established by a third party and agreed by the competent body.

e) Nuclear explosion.

Art. 6. °

1. The amount of compensation resulting from the commitment granted by the State shall be determined in accordance with the following rules:

1.^a By loss, subtraction or destruction of the work the Ministry of Culture shall pay the transferor of this amount equal to the value of the work declared in the application and recognized in the Order of Granting State guarantee.

2.^a For damage of the work, the compensation shall comprise: (a) the reasonable cost of the restoration of the work established by mutual agreement between the transferor and the Ministry of Culture or, if such agreement is not reached, the determined by a mutually accepted Perit on both sides, and (b) an amount equal to the depreciation in the market value of the work, after the restoration by establishing that amount of mutual agreement between the transferor and the Ministry of Culture or, in the absence of such an agreement, the one determined by a Perito accepted by both parties. The amount of this allowance shall not exceed the value of the work declared in the application and recognised in the Order granting the State guarantee.

2. The guarantee granted by the State for works belonging to the same exhibition shall not cover compensation for the destruction, loss, theft or damage of such works up to the limit of:

-The first 2,000,000 pesetas when the total value of the works guaranteed by the State for the exhibition does not exceed 250,000,000 pesetas.

-The first 3,500,000 pesetas when the total value of the works guaranteed by the State for the exhibition exceeds 250,000,000 to 1,250,000,000 pesetas.

-The first 6,000,000 pesetas when the total value of the works guaranteed by the State for the exhibition exceeds 1,250,000,000 to 2,500,000,000 pesetas.

-The first 10,000,000 pesetas if the total value of the works guaranteed by the State for the exhibition exceeds 2,500,000,000 pesetas.

Art. 7. °

Each party will satisfy the fees due for the advice of their respective technicians. The Perios appointed by mutual agreement shall be of account and charge by half of the Ministry of Culture and the transferor of the work.

Art. 8. °

The State Administration, once the compensation has been paid, may:

(a) Repeat against the transferee institution for the amount paid, when the destruction, loss, subtraction or damage of the work has occurred for non-compliance with the provisions of the Order granting the guarantee, gross negligence or intent of that institution, or

(b) To exercise the rights and actions which, by reason of the claim, correspond to the transferee institution and to the transferor of the work against any person other than those who are responsible for it and up to the limit of the compensation.

The Administration shall not be entitled to subrogation against packers, carriers or any other person or Entity related to the handling, transportation and installation of works except when destruction, loss, theft or damage caused by negligence or wilful damage.

Art. 9. °

In the event of recovery of the lost or stolen work, the transferor may retain his/her right on the latter, upon return to the State Administration of the compensation received and updated in accordance with the Price Index Consumption published by the National Statistics Institute.

ADDITIONAL PROVISIONS

First.

The granting of the guarantee of the State, with a higher duration of the year, for works of cultural interest will be carried out in the following terms:

1. The application of the percentages referred to in Article 61 of the recast text of the General Budget Law adopted by Royal Decree-Law No 1091/1988 of 23 September 1988 will be carried out on the amount laid down in the Law of General State budgets as a limit to the cumulative amount of commitments that may be granted in the year.

2. The State of conformity with the transferor of the works may be limited to ensuring:

a) A percentage of the value of the works during the time of their exhibition in the facilities of the transferee institution. The compensation resulting from these commitments shall be determined in accordance with the provisions of Article 6. of this Royal Decree, but the amount payable by the Administration shall be proportional to the percentage of the value of each work covered by the State guarantee.

b) A percentage of the overall value of the works ceded by the same transferor.

The overall amount guaranteed for these works represents the maximum limit of the compensation resulting from these commitments which will be determined in accordance with the provisions of Article 6. of this Royal Decree.

3. The possibility of reviewing the value of the works estimated by the transferor may be envisaged, although this review will only produce effects on the basis of its acceptance by the Director of the transferee institution and by the Ministry of Culture.

Second.

The granting and application of the State guarantee for the works of the Thyssen-Bornemisza collection will be carried out in the terms provided for in the contract signed between the Kingdom of Spain and "Favorita Trustees Limited", and authorised by Royal Decree 1525/1988 of 16 December 1988 laying down the conditions for the installation in Spain of the main part of the Thyssen-Bornemisza collection.

FINAL PROVISIONS

First.

The Ministers of Culture and Economy and Finance are hereby authorized to update, by joint order, the amounts set out in Article 6. 2 of this Royal Decree.

Second.

The Ministers of Culture and Economy and Finance will be able to make the necessary provisions for the development of this Royal Decree in the field of their respective competences.

Third.

This Royal Decree shall enter into force on the day following that of its publication in the "Official Gazette of the State".

Given in Madrid to November 15, 1991.

JOHN CARLOS R.

The Minister of Relations with the Courts

and the Government Secretariat,

VIRGILIO ZAPATERO GOMEZ.