§ 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.