A. All property of an Urban Renewal Authority, including funds, owned or held by it for the purposes of this article shall be exempt from levy and sale by virtue of an execution, and no execution or other judicial process shall issue against the same nor shall judgment against an Urban Renewal Authority be a charge or lien upon such property; provided, however, that the provisions of this section shall not apply to or limit the right of obligees to pursue any remedies for the enforcement of any pledge or lien given pursuant to this article by an Urban Renewal Authority on its rents, fees, grants or revenues from urban renewal projects.

B. The exercise of powers granted by this article will be in all respects for the benefit of the people of this state, and its political subdivisions, and the municipalities of this state, for the improvement of the public health, safety, morals and general welfare of the people. The activities of an Urban Renewal Authority pursuant to this article constitute an essential governmental function and the property or funds of an Urban Renewal Authority, acquired or held for the purposes of this article, are declared to be public property used for essential public and governmental purposes and such property shall be exempt from all taxes of the state, the county, the municipality or any other political subdivision thereof; provided, that such tax exemption shall terminate when the Urban Renewal Authority sells such property in an urban renewal area to a purchaser who is not a public body entitled to tax exemption with respect to such property; or if such property is leased by the Urban Renewal Authority, then the improvements placed thereon shall not be entitled to such tax exemption. Provided, further, that the Urban Renewal Authority is limited in its authority to acquire property to the acquisition which is necessary in the carrying out of an urban renewal plan.

Laws 1977, c. 256, § 38-112, eff. July 1, 1978.