Section 1862. Exemption from taxation of bonds and notes

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The state
  covenants with the  purchasers  and  with  all  subsequent  holders  and
  transferees  of  bonds  and notes, in consideration of the acceptance of
  and payment for the bonds and notes, that the bonds and  notes  and  the
  income  therefrom,  and all moneys, funds and revenues pledged to pay or
  secure the payment of such bonds and notes shall at all  times  be  free
  from taxation, except for estate and gift taxes and taxes on transfers.

                    
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