Section 4607. Exemption from taxation; trusts; higher education loans

(a)
  The property of a system, the portion of wages or salary of an  employee
  deducted  or  to  be  deducted,  the  right  of an employee to a pension
  benefit, and all his rights in the funds of the system, shall be  exempt
  from  taxation  and from the operation of any law relating to bankruptcy
  or insolvency, except as provided in section four thousand  six  hundred
  eight  of  this  article  and subject to the provisions of section three
  thousand two hundred twelve of this chapter.
    (b) No trust created pursuant to this article shall be deemed  invalid
  as violating any existing laws against perpetuities or suspension of the
  power  of  alienation  of title to property; and the income arising from
  any property, real or personal, held in such trust may be  permitted  to
  accumulate  until  the  fund  shall  be sufficient in the opinion of its
  trustee or trustees to accomplish the purposes of such trust.
    (c) Any system may lend money to any of its participating employees or
  their children, who are attending or  planning  to  attend  college,  to
  assist  them  in  meeting their expenses of higher education, where such
  loans  are  guaranteed  by  the  New  York  higher  education   services
  corporation in accordance with the provisions of article fourteen of the
  education  law.  In  such cases no further security for the repayment of
  such loans shall be required of the borrowers by such system.