From: Heather Gray To: jeffrey E. <[email protected]> Subject: Re: Date: Thu, 22 Jun 2017 12:19:37 +0000 We insure the bank collateral art at fair market value, so once we raise the bank line to $800 million of available cash/$1.6 billion of collateral we will need to give the bank a letter from our insurance broker showing that we have $1.6 billion of coverage. Barry mentioned the dealer idea. Interesting and definitely a longer discussion. Sent from my iPhone On Jun 22, 2017, at 8:12 AM, jeffrey E. leevacation®gmail.com> wrote: great then how much insurance do we carry on the bank collateralized art . not urgent , I m thinkin whether or not we shoudl set up a dealer operation for better overall treatment for only certain works. it is a longer discussion that requires long term views. basis analysis, and ownership transfer issues. we would have a resale number and be capable of trade ins etc. On Thu, Jun 22, 2017 at 8:08 AM, Heather Gray < > wrote: We give the bank fmv (because that is what they require) and we use fmv for Noel Calb. The difference varies - some specialists put insurance at 150% of fmv, some go slightly lower or slightly higher. There is no hard and fast rule. They are supposed to be considering what it would cost to go to a gallery today to buy the same work or art or something very similar. Sent from my iPhone On Jun 22, 2017, at 7:49 AM, jeffrey E. [email protected]> wrote: what do we give to the bank/ ? how much do they differ from insurance value? which did we use for noel calb? On Thu, Jun 22, 2017 at 7:19 AM, Heather Gray < > wrote: The insurance values are higher because they are retail replacement values. Fair market is the standard IRS definition: the price a willing buyer would pay a willing seller, neither under any compulsion to buy or sell. We use fair market values for almost everything - all sales, transfers among entities, etc. We use the insurance values when we loan works of art to museums f