Amendment status not verified — confirm the current text below against the official source.
(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 Bank]4 on the security of mortgages not being fully recovered due to such circumstances as may be prescribed. (2) The [Uttar Pradesh Gram Vikas Bank 2]3 and the [Gram Vikas Bank]4 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.]1 (3) The fund shall be maintained and utilized ill such manner and for such purposes as may be prescribed. [Power to borrow money 9-A Notwithstanding anything contained in the Uttar Pradesh Co-operative Societies Act, 1965 the Board may borrow money from the State Government or the Reserve Bank of India, or the National Bank for Agricultural and Rural Development of such other financial Institution, as may be approved by the Trustee.]2