Marvin Mandel, Governor                            965

Any officer with whom, or any bank or trust company with which,
such monies shall be deposited shall act as trustee of such monies and
shall hold and apply the same for the purposes hereof, subject to
such regulations as this Act and the resolution authorizing the bonds
of any issue or the trust agreement securing such bonds may provide.

16.    Enforcement of Rights and Duties.

Any holder of bonds issued under the provisions of this Act or of
any of the coupons appertaining thereto, and the trustee or trustees
under any trust agreement, except to the extent the rights herein
given may be restricted by any such resolution authorizing the issu-
ance of, or any such trust agreement securing, such bonds, may,
either at law or in equity, by suit, action, mandamus or other pro-
ceedings, protect and enforce any and all rights under the laws of the
State or granted hereunder or under such resolution or trust agree-
ment, and may enforce and compel the performance of all duties re-
quired by this Act or by such resolution or trust agreement to be
performed by the Authority or by any officer, employee or agent
thereof, including the fixing, charging and collecting of the rates,
rents, fees and charges herein authorized and required by the pro-
visions of such resolution or trust agreement to be fixed, established
and collected.

17.    Exemption from Taxation.

The exercise of the powers granted by this Act will be in all re-
spects for the benefit of the people of the State, for the increase of
their commerce, welfare and prosperity, and for the improvement of
their health, education, and living conditions, and will constitute the
performance of an essential governmental function, and neither the
Authority nor its agent nor the lessee shall or may be required to pay
any taxes or assessments upon or in respect of a project or any
property acquired or used by the Authority or its agent or the lessee
under the provisions of this Act, or upon the income therefrom, and
any bonds issued under the provisions of this Act, their transfer and
the income therefrom including any profit made on the sale thereof,
shall at all times be free from taxation of every kind by the State and
by the municipalities and all other political subdivisions of the State.

18.    Refunding Bonds.

(a)    The Authority is hereby authorized to provide for the issu-
ance of its bonds for the purpose of refunding any bonds of the
Authority then outstanding, including the payment of any redemp-
tion premium thereon and any interest accrued or to accrue to the
earliest or subsequent date of redemption, purchase or maturity of
such bonds, and, if deemed advisable by the Authority, for the addi-
tional purpose of paying all or any part of the cost of constructing
and acquiring additions, improvements, extensions, or enlargements
of a project or any portion thereof.

(b)    The proceeds of any such bonds issued for the purpose of
refunding outstanding bonds may, in the discretion of the Authority,
be applied to the purchase or retirement at maturity or redemption of
such outstanding bonds either on their earliest or any subsequent
redemption date, and may, pending such application, be placed in
escrow to be applied to such purchase or retirement at maturity or
redemption on such date as may be determined by the Authority.