Section 9 in The U.P. Sahkari Gram Vikas Banks 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 [Gram Vikas Banks] [Substituted by U.P. Act No. 19 of 1994.] on the security of mortgages not being fully recovered due to such circumstances as may be prescribed.(2)The [Uttar Pradesh Gram Vikas Bank] [Substituted by U.P. Act No. 19 of 1994.] and the [Gram Vikas Banks] [Substituted by U.P. Act No. 19 of 1994.] 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] [Inserted by U.P. Act No. 3 of 1979., vide Section 2, w.e.f. 5th October, 1978.].(3)The fund shall be maintained and utilized in such manner and for such purposes as may be prescribed.
