§ 16. The legislature shall annually provide by appropriation for the
payment of the interest upon and installments of principal of all debts
or refunding debts created on behalf of the state except those
contracted under section 9 of this article, as the same shall fall due,
and for the contribution to all of the sinking funds created by law, of
the amounts annually to be contributed under the provisions of section
12, 13 or 15 of this article. If at any time the legislature shall fail
to make any such appropriation, the comptroller shall set apart from the
first revenues thereafter received, applicable to the general fund of
the state, a sum sufficient to pay such interest, installments of
principal, or contributions to such sinking fund, as the case may be,
and shall so apply the moneys thus set apart. The comptroller may be
required to set aside and apply such revenues as aforesaid, at the suit
of any holder of such bonds.

Notwithstanding the foregoing provisions of this section, the
comptroller may covenant with the purchasers of any state obligations
that they shall have no further rights against the state for payment of
such obligations or any interest thereon after an amount or amounts
determined in accordance with the provisions of such covenant is
deposited in a described fund or with a named or described agency or
trustee. In such case, this section shall have no further application
with respect to payment of such obligations or any interest thereon
after the comptroller has complied with the prescribed conditions of
such covenant.