N.Y. State Fin. Law § 141

§ 141. Claims against contractors. A contractor under a contract\nheretofore or hereafter made or awarded by the state or by any public\ndepartment or official thereof, in case any claim or notice of claim for\ninjury or damage to person or property, arising out of or in connection\nwith the performance of such contract, be made to or filed with the\nstate or any public department or official thereof, may file with the\ncomptroller an undertaking in the terms and manner prescribed in this\nsection, and thereupon the comptroller shall be authorized to make\npayments to such contractor pursuant to the terms of such contract. Such\nundertaking shall be executed with such sureties, in such form and for\nsuch amount as the comptroller may prescribe, and shall be conditioned\nfor the payment by such contractor of any judgment which may be\nrecovered in an action brought upon such claim.\n