N.Y. Banking Law § 420-e: Exemption from taxation

§ 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.