§ 366 — Guaranty by the state

§ 366. Guaranty by the state. 1. To the extent authorized by the\nconstitution at the time of the issuance of notes or bonds, the punctual\npayment of the notes and bonds shall be, and the same hereby is, fully\nand unconditionally guaranteed by the state, both as to principal and\ninterest, according to their terms; and such guaranty shall be expressed\nupon the face thereof by the signature or facsimile signature of the\ncomptroller or a deputy comptroller. In the event that the authority\nshall fail to pay when due, the principal of, or interest on, the notes\nor bonds, the comptroller shall pay the holder thereof, and thereupon\nthe state shall be subrogated to the rights of the noteholders or\nbondholders so paid.\n 2. The authority shall have power to issue notes and bonds without the\nguaranty of the state and may issue such notes or bonds before and after\nthe issuance of notes or bonds so guaranteed.\n 3. When guaranteed notes or guaranteed bonds are outstanding, notes or\nbonds secured by a pledge of receipts or revenues having priority over\nsuch outstanding guaranteed notes or guaranteed bonds shall not be\nissued, except with the consent of the comptroller, and unless the\nauthority shall by resolution first find and determine that,\nnotwithstanding such pledge, the authority will have adequate means to\nmeet its obligations to the holders of such outstanding guaranteed notes\nor bonds.\n 4. When notes or bonds are outstanding secured by a pledge of receipts\nor revenues, guaranteed notes or bonds either unsecured, or secured by a\npledge of receipts or revenues subordinate to the pledge securing such\noutstanding notes or bonds, shall not be issued unless the authority\nshall first find and determine by resolution that notwithstanding the\npledge securing such outstanding notes or bonds, the authority will have\nadequate means to meet its obligations on the guaranteed notes or bonds\nabout to be issued.\n