The Governor and the Office of Treasury and Fiscal Services are authorized and directed to issue to the board of regents the state's obligation in the form of nonnegotiable bonds to become due 50 years from the date of issue and bearing interest at the rate of 4 1/4 percent per annum payable semiannually on January 1 and July 1 of each year in redemption of obligations of the state as provided in Code Section 20-3-64.