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Section 38
Safeguard Fund
: (1) There will be separate funds in the fund for deposit and loan protection related activities as follows:-
(a)  Deposit Protection Fund, and
(b) Loan Protection Fund.
(2) The deposit protection fund as per clause (a) of sub-section (1) shall have the following amounts:-
(a)  such amount as the Committee may determine out of the paid-up capital of the Fund,
(b) the amount of initial contribution and special contribution paid by the protected member institution,
(c)   the annual protection fee paid by the protected member institution,
(d)   the amount of late fee and penalty paid by the protected member institution,
(e)   Loans, grants, donations, assistance funds,
provided by foreign governments, bodies or individuals (f)   Income derived from the investment of the financial assets of the Deposit Protection Fund,
(g)   Amounts received in respect of research, and
(h) Amounts received from the Government of Nepal.
(3) The following amounts will be kept in the loan protection fund as per clause (b) of sub-section (1):-
(a)  such amount as the Committee may determine out of the paid-up capital of the Fund,
(b) Fees to be paid by Member Institutions participating in the Credit Protection Programme,
(c)   Fees to be paid by the borrower for securing the loan,
(d) Grant amount to be provided by Government of Nepal for loan protection fee,
(e)   income derived from the investment of financial assets of the Credit Protection Fund,
(f)   Loans, grants, donations and assistance amounts provided by foreign governments, bodies or individuals, and
(g) Amounts received from the Government of Nepal.
(4) Before receiving the amount as per Clause (e) of Sub-section (2) and Clause (f) of Sub-section (3), the fund shall obtain the approval of the Government of Nepal.
(5) The funds received under sub-sections (2) and (3) shall keep a separate account in Nepal Rastra Bank.