Section 119. Guarantee Fund.

(1) The Government may constitute a fund to be called ‘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 Housing Society on the security of mortgages not being fully recovered due to such circumstances as may be prescribed. (2) The Housefed and the Primary Housing Society shall contribute to the guarantee fund at such rates as may be prescribed. (3) The guarantee fund shall be maintained and utilized in such manner and for such purposes as may be prescribed.