The State Agricultural Credit Corporations Act,1968
Section 24. Stabilisation Fund
(1) To the Stabilisation Fund shall be credited such sum, not being less than ten and not more than fifteen percent, as the Corporation may deem fit from out of its net annual profits before declaring a dividend.
(2) Subject to such conditions as may be specified by the Board by regulations, the amount lying to the credit of the Stabilisation Fund shall be utilised solely for the purpose of making loans or advances with a view to enabling any co- operative society or other person to pay its or his dues in case where, in the opinion of the Corporation, such society or other person is unable to pay such dues in time owing to drought, famine or other natural calamities.