62. (1) The Bank may establish and maintain a Fund to be called the Industrial Credit Fund to which shall be credited- (a) an initial sum of Taka one crore to be subscribed by the Government; and (b) appropriations of such amount from the surplus profits of the Bank as may be determined by the Bank in consultation with the Government. (2) The Industrial Credit Fund shall be applied by the Bank to the following objects, namely :- (a) The making of medium-term and long-term loans and advances to co-operative banks and such institutions as the Bank may deem fit repayable on the expiry of a fixed period, not exceeding five years from the date of the making thereof, against such security as the Bank may, from time to time, prescribe in this behalf; (b) The making of medium-term and long-term loans and advances to industrial credit agencies created or established by or under any law for the time being in force on such terms and conditions as the Bank may, from time to time, prescribe in this behalf; and (c) Where the Bank is satisfied that any institution to which a loan or advance as referred to in clause (4) of Article 16 has been made is unable to repay the same in time, the converting of such loan and advance into a medium-term or long-term loan or advance, as the case may be, in accordance with the provisions of sub-clause (a); and (d) The financing of a system of guarantees in accordance with rules to be made by the Bank to cover a portion ¹[* * *] of any bona fide loss that a scheduled bank is proved to the satisfaction of the Bank to have incurred in any transaction of medium-term and long-term loan to a party seeking to establish an industrial project of small or medium size.