I. All bonds or notes (except short-term loans) issued under the provisions of this subdivision shall be sold (1) at public sealed bidding (2) only after an advertisement calling for bids has been published at least once in each of 2 successive calendar weeks in a newspaper of general circulation in New Hampshire and in a financial publication of national circulation, the first publication being not less than 15 days prior to the day the bids will be received, and (3) to the highest bidder. The governor and council may reject any or all bids, or negotiate with the highest responsible bidder.
II. The proceeds from the sale of such bonds shall be held by the treasurer and paid out by him upon warrants drawn by the governor for the purposes of this subdivision alone, and the governor with the advice and consent of the council shall draw his warrant for the payment from the funds provided by this subdivision of all sums expended or due for the purposes herein authorized, provided, however, that such expenditures or commitments shall not exceed the sum of $5,000,000 prior to July 1, 1955. All interest from such bonds shall be exempt from taxation within the state of New Hampshire.