New York Laws
Sub Title 2 - Subtitle Ii Financial Assistance From Special Purpose Funds
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.

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