Payment of state debts; when comptroller to pay without appropriation

§ 16. The legislature shall annually provide by appropriation for the\npayment of the interest upon and installments of principal of all debts\nor refunding debts created on behalf of the state except those\ncontracted under section 9 of this article, as the same shall fall due,\nand for the contribution to all of the sinking funds created by law, of\nthe amounts annually to be contributed under the provisions of section\n12, 13 or 15 of this article. If at any time the legislature shall fail\nto make any such appropriation, the comptroller shall set apart from the\nfirst revenues thereafter received, applicable to the general fund of\nthe state, a sum sufficient to pay such interest, installments of\nprincipal, or contributions to such sinking fund, as the case may be,\nand shall so apply the moneys thus set apart. The comptroller may be\nrequired to set aside and apply such revenues as aforesaid, at the suit\nof any holder of such bonds.\n Notwithstanding the foregoing provisions of this section, the\ncomptroller may covenant with the purchasers of any state obligations\nthat they shall have no further rights against the state for payment of\nsuch obligations or any interest thereon after an amount or amounts\ndetermined in accordance with the provisions of such covenant is\ndeposited in a described fund or with a named or described agency or\ntrustee. In such case, this section shall have no further application\nwith respect to payment of such obligations or any interest thereon\nafter the comptroller has complied with the prescribed conditions of\nsuch covenant.\n