My horse is going out on loan and i am drawing up a loan agreement, however one thing i am unsure about is do i give the loaner his original copy of his passport?
i wouldn't, as it is a big part of proving ownership if it goes pear-shaped. however, since all horses are supposed to have their passport with them whenever travelling, it's a bit of a tricky one tbh.
It's up to you. Some yards and all transport companies require it. So if he/she is being transported and moving onto a livery yard then you should. The loanees vet will also need it for treatment and vaccinations.
As for 'if it all goes pear shaped' that's what a legally binding contract is for.
The Passport should go with the horse. If you don't feel safe in letting the person have the Passport are you sure they are the right people to care for the horse?
My pony has been to three llan homes (one now thankfully a good, long term home) and his passport has always gone with him. Just make sure your Loan Agreement covers all aspects of the loan, make sure it is signed and witnessed by a Third Party and never lose your own copy.
The BHS loan agreement is a good one, it's on their site. I have my loan horses passport and it should definitely be with the horse.
Rather than worrying about things going pear shaped, I'd suggest thoroughly vetting any potential loan home. Check out the yard, meet their instructor (check the instructor is approved), get references, check out the rider's record (if they've ever been affiliated) and once the horse goes out on loan check up on them 3 or 4 times for the first few months. People will understand you want the best home for your horse. Good luck, nice loan homes do exist.
I sent my pony's passport with him as the loaners needed to get his jabs done.
I've had one bad experience with loaning (pony got sent back as people turned out to be liars) and the current loaners are brilliant. They adore him and actually emailed me about an hour ago to see if I can go up to clip him for them next weekend. I couldnt' ask for better loaners TBH and I'm happy for them to have his passport. He is freezemarked and microchipped so I'm happy security wise, and they were happy for me to take up references, sign a contract, for me to check the yard, have proof of Id etc...