§ 420-e. Exemption from taxation. It is hereby found, determined and
declared that the creation of the fund and the carrying out of its
purposes is in all respects for the benefit of the people of the state
of New York and for the improvement of their health, welfare and
prosperity and is a public purpose, and that the fund will be performing
an essential governmental function in the exercise of the powers
conferred upon it by this article, and that the fund shall be required
to pay no fees, taxes or assessments, whether state or local, including
but not limited to fees, taxes or assessments on real estate, franchise
taxes, sales taxes or other excise taxes, upon its activities as an
insurer; and that all income received by the fund and that the bonds of
the fund and the income therefrom shall at all times be exempt from
taxation, except for gift and estate taxes and taxes on transfers. This
section shall constitute a covenant and agreement with the holders of
all bonds issued by the fund.