N.Y. ISC Law § 4607

§ 4607. Exemption from taxation; trusts; higher education loans. (a)\nThe property of a system, the portion of wages or salary of an employee\ndeducted or to be deducted, the right of an employee to a pension\nbenefit, and all his rights in the funds of the system, shall be exempt\nfrom taxation and from the operation of any law relating to bankruptcy\nor insolvency, except as provided in section four thousand six hundred\neight of this article and subject to the provisions of section three\nthousand two hundred twelve of this chapter.\n (b) No trust created pursuant to this article shall be deemed invalid\nas violating any existing laws against perpetuities or suspension of the\npower of alienation of title to property; and the income arising from\nany property, real or personal, held in such trust may be permitted to\naccumulate until the fund shall be sufficient in the opinion of its\ntrustee or trustees to accomplish the purposes of such trust.\n (c) Any system may lend money to any of its participating employees or\ntheir children, who are attending or planning to attend college, to\nassist them in meeting their expenses of higher education, where such\nloans are guaranteed by the New York higher education services\ncorporation in accordance with the provisions of article fourteen of the\neducation law. In such cases no further security for the repayment of\nsuch loans shall be required of the borrowers by such system.\n