All instruments, specimens, objects, or materials of permanent value, whether purchased or obtained out of or by means of the grant, or supplied from among those at the disposal of the Institute, are to be regarded, unless the Research Grants Committee decide otherwise, as the property of the Institute, and are to be returned by the grantee, for disposal according to the orders of the committee, at the conclusion of his research, or at such other time as the committee may determine.

Every one receiving a grant shall furnish to the Research Grants Committee, on or before the 1st January following upon the allotment of the grant, a report (or, if the object of the grant be not attained, an interim report, to be renewed at the same date in each subsequent year until a final report can be furnished or the committee dispense with further reports), containing (a) a brief statement showing the results arrived at or the stage which the inquiry has reached; (b) a general statement of the expenditure incurred, accompanied, as far as is possible, with vouchers; (c) a list of the instruments, specimens, objects, or materials purchased or obtained out of the grant, or supplied by the committee, which are at present in his possession; and (d) reference to any transactions, journals, or other publications in which results of the research have been printed. In the event of the grantee failing to send in within three months of the said 1st January a report satisfactory to the committee he may be required, on resolution of the Board of Governors, to return the whole of the sum allotted to him.

Where a grant is made to two or more persons acting as a committee for the purpose of carrying out some research, one member

Grants shall be given preferentially to investigations which appear to have an economic bearing; purely scientific investigations to be by no means excluded. When the research is one that leads to a direct economic advance the Government shall reserve to itself the right of patenting the discovery and of rewarding the discoverer, but it is to be understood that grants from the research-grant vote are not in the nature of a reward or a prize, but for out-of-pocket expenses incurred by the research worker, including salary or endowment of assistant, but not salary for the grantee himself. Plants, books, apparatus, chemicals, &c., purchased for applicants are to remain the property of the Institute, and eventually to form a loan collection of apparatus in the manner now practised by the Royal Society of London.

First method of initiating researches: Applications shall be invited for grants in aid of research to be specified by applicants.

Second method of initiating researches: The Governors of the Institute shall suggest from time to time subjects the investigation of which is desirable, and ask capable investigators to undertake such researches, the Institute paying for apparatus, material, and working-expenses, including assistance.

All applications for grants shall come through some incorporated society.

In the case of a refusal to recommend a grant, the Standing Committee shall not give any reasons for its refusal, unless such reason is stated in the minutes of the Standing Committee's meeting.