Section 141(1) in The Gujarat Co-Operative Societies Act, 1961
(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] [Substituted for the words 'Land Mortgage Bank' by Gujarat 24 of 1964] 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 State Government, it is necessary to provide for or create a separate Guarantee fund.
