Sec. 25. (a) Bonds issued under this chapter or under IC 14-6-29.5 (before its repeal) constitute legal investments for the following:
(1) Private trust money.
(2) The money of banks, trust companies, insurance companies, building and loan associations, credit unions, banks of discount and deposit, savings associations, mortgage guaranty companies, small loan companies, industrial loan and investment companies, and any other financial institutions organized under Indiana law.
(b) Bonds issued under this chapter and the interest on the bonds are exempt from taxation as prescribed by IC 6-8-5-1.