The Text

The legislature may appropriate out of any funds in the treasury, moneys to pay the accruing interest and principal of any debt heretofore or hereafter created, or any part thereof and may, if such debt be payable otherwise than in annual instalments, set apart in each fiscal year, moneys in the state treasury as a sinking fund to pay the interest as it falls due and to pay and discharge the principal of any debt heretofore or hereafter created under section four of article seven of the constitution until the same shall be wholly paid, and the principal and income of such sinking fund shall be applied to the purpose for which said sinking fund is created and to no other purpose whatever; and, in the event such moneys so set apart in any fiscal year be sufficient to provide such sinking fund, a direct annual tax for such year need not be imposed and collected, as required by the provisions of said section four of article seven, or of any law enacted in pursuance thereof. The legislature shall annually as the same shall fall due provide by direct tax, appropriation or both for the payment of the interest upon and instalments of principal of all debts created on behalf of the state, payable in annual instalments, pursuant to section four of article seven, or any law enacted in pursuance thereof.