N.Y. Tobacco Settlement Financing Corporation Act § 9: Tax exemption and tax contract by the state

§ 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.