N.Y. Public Authorities Law § 1813: Guaranty by the state

§ 1813. Guaranty by the state. To the extent authorized by the

constitution at the time of the issuance of the special purpose bonds or

notes of the authority, the punctual payment of such special purpose

bonds and notes shall be, and the same hereby is, fully and

unconditionally guaranteed by the state, both as to principal and

interest, according to their terms; and such guaranty shall be expressed

upon the face thereof by the signature or facsimile signature of the

comptroller or a deputy comptroller. In the event that the authority

shall fail to pay when due, the principal of, or interest on, such

special purpose bonds or notes, the comptroller shall set apart from the

first revenues thereafter received, applicable to the general fund of

the state, a sum sufficient to pay such principal or interest, as the

case may be, and shall so apply the moneys thus set apart and thereupon

the state shall be subrogated to the rights of the bondholders or

noteholders so paid. The comptroller may be required to set aside and

apply such revenues as aforesaid, at the suit of any holder of such

bonds or notes.