Section 40-58-12 - Property exempt from taxes and from levy and sale by virtue of an execution1. All property of a municipality, including funds, owned or held by it for the purposes of this chapter is exempt from levy and sale by virtue of an execution, and no execution or other judicial process may issue against the same nor may judgment against a municipality be a charge or lien upon the property; provided, however, that the provisions of this section do 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 chapter by a municipality on its rents, fees, grants, or revenues from development or renewal projects.2. The property of a municipality, acquired or held for the purposes of this chapter, is declared to be public property used for essential public and governmental purposes and the property is exempt from all taxes of the municipality, the county, the state, or any political subdivision of the state; provided, that this tax exemption terminates when the municipality sells, leases, or otherwise disposes of the property in a development or renewal area to a purchaser or lessee which is not a public body entitled to tax exemption with respect to the property.