N.Y. Const. art. XVIII, § 7: Liability arising from guarantees to be deemed indebtedness; method of computing

§ 7. The liability arising from any guarantee of the principal of and

interest on indebtedness contracted by a public corporation shall be

deemed indebtedness in the amount of the face value of the principal

thereof remaining unpaid. The liability arising from any guarantee of

only the interest on indebtedness contracted by a public corporation

shall be deemed indebtedness in the amount of the commuted value of the

total interest guaranteed and remaining unpaid, calculated on the basis

of an annual interest rate of four per centum.