N.Y. State Fin. Law § 141
A contractor under a contract heretofore or hereafter made or awarded by the state or by any public department or official thereof, in case any claim or notice of claim for injury or damage to person or property, arising out of or in connection with the performance of such contract, be made to or filed with the state or any public department or official thereof, may file with the comptroller an undertaking in the terms and manner prescribed in this section, and thereupon the comptroller shall be authorized to make payments to such contractor pursuant to the terms of such contract. Such undertaking shall be executed with such sureties, in such form and for such amount as the comptroller may prescribe, and shall be conditioned for the payment by such contractor of any judgment which may be recovered in an action brought upon such claim.
N.Y. State Fin. Law § 141