§ 9. Tax exemption and tax contract by the state. 1. It is hereby
determined that the creation of the corporation and the carrying out of
its corporate purposes are in all respects for the benefit of the people
of the state of New York and are public purposes. Accordingly, the
corporation shall be regarded as performing an essential governmental
function in the exercise of the powers conferred upon it by this act.
The property of the corporation, its income and its operations shall be
exempt from taxation, assessments, special assessments and ad valorem
levies. The corporation shall not be required to pay any fees, taxes,
special ad valorem levies or assessments of any kind, whether state or
local, including, but not limited to, fees, taxes, special ad valorem
levies or assessments on real property, franchise taxes, sales taxes or
other taxes, upon or with respect to any property owned by it or under
its jurisdiction, control or supervision, or upon the uses thereof, or
upon or with respect to its activities or operations in furtherance of
the powers conferred upon it by this act, or upon or with respect to any
fares, tolls, rentals, rates, charges, fees, revenues or other income
received by the corporation.

2. Any bonds issued pursuant to this act, their transfer and the
income therefrom shall, at all times, be exempt from taxation.

3. The state hereby covenants with the purchasers and with all
subsequent holders and transferees of bonds issued by the corporation
pursuant to this act, in consideration of the acceptance of and payment
for the bonds, that the bonds of the corporation issued pursuant to this
act and the income therefrom and all revenues, moneys, and other
property pledged to pay or to secure the payment of such bonds shall at
all times be exempt from taxation.

4. In the case of any bonds of the corporation, interest on which is
intended to be exempt from federal income tax, the corporation shall
prescribe restrictions on the use of the proceeds thereof and related
matters only as are necessary to assure such exemption, and the
recipients of such proceeds shall be bound thereby to the extent such
restrictions shall be made applicable to them. Any such recipient,
including, but not limited to, the state, a public benefit corporation,
a school district or municipality is authorized to execute a tax
regulatory agreement with the corporation or the state, as the case may
be, and the execution of such an agreement may be treated by the
corporation or the state as a condition to receiving any such proceeds.