141. Provision for Guarantee funds to meet certain losses.- (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 Agriculture and Rural Development Banks on titles to immovable property subsequently found to be defective or for any other purpose under for or create a separate Guarantee Fund.
(2) The State Agriculture and Rural Development Bank and the Agriculture and Rural 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.
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