N.Y. General Obligations Law § 7-301: Liability of surety on an undertaking

§ 7-301. Liability of surety on an undertaking. When any undertaking

executed within or without the state specifies that it is to be void

upon payment of an amount or performance of an act, the undertaking

shall be deemed to contain a covenant either to pay the amount or to

perform the act specified. In the event of payment, the amount

recoverable from a surety shall not exceed the amount specified in the

undertaking except that interest in addition to this amount shall be

awarded from the time of default by the surety.