2006 New York Code - Payment of state debts; when comptroller to pay without appropriation.

 
    §  16. The legislature shall annually provide by appropriation for the
  payment of the interest upon and installments of principal of all  debts
  or  refunding  debts  created  on  behalf  of  the  state  except  those
  contracted under section 9 of this article, as the same shall fall  due,
  and  for the contribution to all of the sinking funds created by law, of
  the amounts annually to be contributed under the provisions  of  section
  12,  13 or 15 of this article. If at any time the legislature shall fail
  to make any such appropriation, 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 interest, installments of
  principal, or contributions to such sinking fund, as the  case  may  be,
  and  shall  so  apply  the moneys thus set apart. The comptroller may be
  required to set aside and apply such revenues as aforesaid, at the  suit
  of any holder of such bonds.
    Notwithstanding   the   foregoing  provisions  of  this  section,  the
  comptroller may covenant with the purchasers of  any  state  obligations
  that  they shall have no further rights against the state for payment of
  such obligations or any interest thereon  after  an  amount  or  amounts
  determined  in  accordance  with  the  provisions  of  such  covenant is
  deposited in a described fund or with a named  or  described  agency  or
  trustee.  In  such  case, this section shall have no further application
  with respect to payment of such  obligations  or  any  interest  thereon
  after  the  comptroller  has  complied with the prescribed conditions of
  such covenant.