(1) It shall be competent for the State Government to

(1) It shall be competent for the State Governmeni? to conetibube one or more Guarantee Funds on such terms and conditions as ii; may deem fit, for the purpose of meeting losses that might arise as a. result of loana being made by the Land Development Banks on tibiae “be immovable property subsequently found to be defective or for any other purposes under this Chapter, for which in the opinion of the Stem Government, it) is necessary to provide for or create a. separate Guarantee Fund.\n(2) The State Land Development Bank and the Land Development Beaks shell contribute be such funds at such rate as may be prescribed, mad the constitution, maintenance and utilisation of such Funds shall be governed by such rules, as may be made by the State Government in this behalf.