Section 585. Bonds and notes to be tax exempt

1. It is hereby determined
  that the creation of the authority and the carrying out of its corporate
  purposes is a public purpose, and the authority  shall  be  regarded  as
  performing  a  governmental  function  in  the  exercise  of  the powers
  conferred upon it by this title and shall be required to pay no taxes or
  assessments upon any of  the  property  acquired  by  it  or  under  its
  jurisdiction  or  control or supervision or upon its activities, or upon
  the income therefrom.
    2. Any bonds or notes issued pursuant to this title, together with the
  income therefrom, as well as the property of  the  authority,  shall  be
  exempt from taxation, except for transfer and estate taxes.