New York Laws
Article 5-A - Certificates of Participation
66-C - Certificates of Participation Not Debt.

§ 66-c. Certificates of participation not debt. Certificates of
participation or similar instruments issued pursuant to this article and
the underlying installment purchase or lease purchase contracts do not
constitute or create debt of the state as defined in article seven of
the state constitution, nor a contractual obligation in excess of the
amounts appropriated therefor, and the state has no continuing legal or
moral obligation to appropriate money for said payments or other
obligations due under the installment purchase contracts. In the case of
the failure to appropriate, the sole security for any remaining periodic
payments shall be the property subject to the installment purchase or
lease purchase contract, and debt service reserve funds in the custody
of the trustee or any other remaining proceeds, subject to the
provisions of section sixty-six-h of this article.

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