State Act

The U P Sahkari Gram Vikas Bank Act 1964

9. Guarantee fund. - (1) The State Government may constitute a Guarantee Fund on such terms and conditions as it may deem fit, for the purpose of meeting losses that might arise on account of loans advanced by the 1[Gram Vikas Banks] on the security of mortgages not being fully recovered due to such circumstances as may be prescribed. (2) The 1[Uttar Pradesh Gram Vikas Bank] and the 1[Gram Vikas Banks] shall contribute to such fund at such rates as may be prescribed. [(2-A) The State Government may also contribute to the fund from time to time such amount as it may deem fit]. (3) The fund shall be maintained and utilized in such manner and for such purposes as may be prescribed.