§ 1685. Exemptions from taxation. It is hereby found, determined and
declared that the creation of the authority and the carrying out of its
corporate purposes is in all respects for the benefit of the people of
the state of New York, for the improvement of their education, welfare
and prosperity, and is a public purpose, and that the dormitories of the
authority are an essential part of the state education system, and that
the authority will be performing an essential governmental function in
the exercise of the powers conferred upon it by this title, and the
state of New York covenants with the holders of the bonds that the
authority shall be required to pay no taxes or assessments upon any of
the property acquired by it or under its jurisdiction, control,
possession or supervision or upon its activities in the operation and
maintenance of such dormitories or any moneys, revenues or other income
received by the authority and that the bonds of the authority and the
income therefrom shall at all times be exempt from taxation, except for
transfer and estate taxes.