N.Y. State Fin. Law § 66-c

§ 66-c. Certificates of participation not debt. Certificates of\nparticipation or similar instruments issued pursuant to this article and\nthe underlying installment purchase or lease purchase contracts do not\nconstitute or create debt of the state as defined in article seven of\nthe state constitution, nor a contractual obligation in excess of the\namounts appropriated therefor, and the state has no continuing legal or\nmoral obligation to appropriate money for said payments or other\nobligations due under the installment purchase contracts. In the case of\nthe failure to appropriate, the sole security for any remaining periodic\npayments shall be the property subject to the installment purchase or\nlease purchase contract, and debt service reserve funds in the custody\nof the trustee or any other remaining proceeds, subject to the\nprovisions of section sixty-six-h of this article.\n