Provision for guarantee funds to meet certain losses.

Provision for guarantee funds to meet certain losses. (1) It shall be competent for the State Government to constitute one or more Guarantee Funds on such terms and conditions as it may deem fit, for the purposes of meeting losses that might arise as a result of loans being made by the Land Development Banks on titles to immovable property subsequently found to be defective or for any other purpose under this Chapter, for which in the opinion of the State Government, it is necessary to provide for or create a separate Guarantee Fund. (2) The State Land Development Bank and the Primary Land Development Bank shall contribute to such funds at such rate as may be prescribed, and the constitution, maintenance and utilization of such funds shall be governed by such rules, as may be made by the State Government in this behalf.