New York Consolidated Laws, Workers' Compensation Law - WKC § 34. Preferences

Compensation shall be a lien against the assets of the carrier of employer without limit of amount subordinate, however, to claims for unpaid wages and prior recorded liens.  The provisions of this section shall not apply to the state insurance fund with respect to those liabilities and obligations assumed by the state pursuant to section eighty-seven-d of this chapter or as the result of any insuring agreement between the state insurance fund and the department of civil service pursuant to section eighty-eight-c of this chapter.  In such instances compensation shall be alien   1 against the assets of the state as the employer.