KRS 164A.200: Corporation exempt from taxation -- Interest on bonds issued by

corporation may be subject to federal income taxation.

The Kentucky Higher Education Student Loan Corporation has been duly created as an

independent de jure municipal corporation and po litical subdivision of the

Commonwealth of Kentucky. As the corporation will in all respects be performing

essential governmental and public functions, the corporation shall not be required to pay

any taxes or assessments upon any of its property, real, pe rsonal, or mixed, nor upon the

income therefrom; and bonds, notes or other obligations issued by the corporation under

this chapter, the income thereon, and the transfer thereof, including any profit made on

the sale thereof, shall at all times be exempt f rom taxation or assessment of any type by

the Commonwealth, its agencies and departments, and by all political subdivisions within

the state. Nothing contained in this chapter shall preclude or prevent the authorization and

issuance by the corporation from time to time of bonds, notes or other obligations, the

receipt of interest on which may be subject to federal income taxation.