(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 purpose 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 Government, it is
necessary to provide for or create a separate Guarantee Fund.
(2) The State Land Development Bank and the Land Development Banks shall contribute to such funds at such rate as may be prescribed and 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.
(2) The State Land Development Bank and the Land Development Banks shall contribute to such funds at such rate as may be prescribed and 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.