Section 3245. Exemption from taxation

1. It is hereby determined that the
  creation of the corporation  and  the  carrying  out  of  its  corporate
  purpose  is  in  all  respects a public and governmental purpose for the
  benefit of the people of the state and  for  the  improvement  of  their
  health,  safety,  welfare,  comfort and security, and that said purposes
  are public purposes and that  the  corporation  will  be  performing  an
  essential  governmental function in the exercise of the powers conferred
  upon it by this title.
    2. The property of the corporation and its income and operations shall
  be exempt from taxation.
    3. The bonds and notes of the  corporation  issued  pursuant  to  this
  title and the income therefrom and all its fees, charges, gifts, grants,
  revenues, receipts, and other monies received or to be received, pledged
  to  pay  or secure the payment of such bonds or notes shall at all times
  be free from taxation, except for estate and gift taxes on transfers.
    4. In the case of any bonds or notes 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  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.