Section 2517. Exemption from taxation of bonds and notes

It is hereby
  determined that the creation of the authority is in all respects for the
  benefit of the people of the state, for the improvement of their  health
  and  welfare,  and  for  the  promotion  of  the  economy, and that said
  purposes are public purposes and the authority  will  be  performing  an
  essential  governmental function in the exercise of the powers conferred
  upon it by this title, and the state covenants with the  purchasers  and
  all  subsequent holders and transferees of bonds and notes issued by the
  authority, in consideration of the acceptance of  and  payment  for  the
  bonds  and  notes,  that  the  bonds  and notes of the authority, issued
  pursuant to this title and  the  income  therefrom  and  all  its  fees,
  charges, gifts, grants, revenues, receipts, and other moneys 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  or
  gift taxes and taxes on transfers.
    * NB (Discontinued-Board of Directors never appointed)