2006 New York Code - Guaranty By The State.

 
    §  366.  Guaranty  by  the  state.  1. To the extent authorized by the
  constitution at the time of the issuance of notes or bonds, the punctual
  payment of the notes and bonds 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, the  notes
  or  bonds,  the  comptroller shall pay the holder thereof, and thereupon
  the state shall be subrogated  to  the  rights  of  the  noteholders  or
  bondholders so paid.
    2. The authority shall have power to issue notes and bonds without the
  guaranty of the state and may issue such notes or bonds before and after
  the issuance of notes or bonds so guaranteed.
    3. When guaranteed notes or guaranteed bonds are outstanding, notes or
  bonds  secured  by a pledge of receipts or revenues having priority over
  such outstanding guaranteed notes  or  guaranteed  bonds  shall  not  be
  issued,  except  with  the  consent  of  the comptroller, and unless the
  authority  shall  by  resolution  first   find   and   determine   that,
  notwithstanding  such  pledge, the authority will have adequate means to
  meet its obligations to the holders of such outstanding guaranteed notes
  or bonds.
    4. When notes or bonds are outstanding secured by a pledge of receipts
  or revenues, guaranteed notes or bonds either unsecured, or secured by a
  pledge of receipts or revenues subordinate to the pledge  securing  such
  outstanding  notes  or  bonds,  shall not be issued unless the authority
  shall first find and determine by resolution  that  notwithstanding  the
  pledge securing such outstanding notes or bonds, the authority will have
  adequate  means to meet its obligations on the guaranteed notes or bonds
  about to be issued.