Section 9 - Tax exemption and tax contract by the state1.It is hereby determined that the creation of the corporation and the carrying out of its corporate purposes are in all respects for the benefit of the people of the state of New York and are public purposes. Accordingly, the corporation shall be regarded as performing an essential governmental function in the exercise of the powers conferred upon it by this act. The property of the corporation, its income and its operations shall be exempt from taxation, assessments, special assessments and ad valorem levies. The corporation shall not be required to pay any fees, taxes, special ad valorem levies or assessments of any kind, whether state or local, including, but not limited to, fees, taxes, special ad valorem levies or assessments on real property, franchise taxes, sales taxes or other taxes, upon or with respect to any property owned by it or under its jurisdiction, control or supervision, or upon the uses thereof, or upon or with respect to its activities or operations in furtherance of the powers conferred upon it by this act, or upon or with respect to any fares, tolls, rentals, rates, charges, fees, revenues or other income received by the corporation.2.Any bonds issued pursuant to this act, their transfer and the income therefrom shall, at all times, be exempt from taxation.3.The state hereby covenants with the purchasers and with all subsequent holders and transferees of bonds issued by the corporation pursuant to this act, in consideration of the acceptance of and payment for the bonds, that the bonds of the corporation issued pursuant to this act and the income therefrom and all revenues, moneys, and other property pledged to pay or to secure the payment of such bonds shall at all times be exempt from taxation.4.In the case of any bonds 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 only 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. Any such recipient, including, but not limited to, the state, a public benefit corporation, a school district or municipality is authorized to execute a tax regulatory agreement with the corporation or the state, as the case may be, and the execution of such an agreement may be treated by the corporation or the state as a condition to receiving any such proceeds.N.Y. Tobacco Settlement Financing Corporation Act § 9