Section 9 in The M.P. Shakari Krishi Aur Gramin Vikas Bank Adhiniyam 1999
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 may arise on account of loans advanced by the State Development Bank and District Banks on the securities furnished in favour of the State Development Bank or transferred under the provisions of Section 20 not being fully recovered due to such circumstances as may be specified in the Rules.(2)The State Development Bank and District Banks shall contribute to Guarantee Fund at such rales as may be prescribed.(3)The Fund shall be maintained and utilised in such manner as may be prescribed.
