N.M. Code R. § 1.5.21.14 – Final Approval and Processing of Lease

A. PCD authorization to enter lease: PCD shall give written authorization to the agency to proceed to enter into a lease before the agency may enter into a lease agreement.
B. Lease:
(1) After receiving written authorization to enter into a lease, the agency shall complete three (3) originally-signed standard New Mexico lease of real property forms (GSD forms) and submit them to PCD for review and approval. Each lease shall include, as a minimum, the following attachments:
(a) RFP and amendments to the RFP;
(b) proposed lessor's proposal and any clarifications or certifications;
(c) certificate of insurance;
(d) approved record drawings; and
(e) performance bond.
(2) An agency that does not regularly perform leasing tasks may request PCD to complete the lease forms. The agency will be responsible for acquiring all signatures, notarizations, and copies of all attachments and forms.
C. Performance bond: A performance bond in the amount equivalent to twenty-five percent (25%) of the lessee's total first year lease payment shall be submitted by the lessor with the signed lease. The performance bond secures the lessor's performance to provide lease space in conformance with the approved lease record drawings and lease agreement. The bond shall be returned to the lessor upon agency and PCD acceptance of the lease space for occupancy. In the event that the lessor fails to provide the lease space conforming to the lease record drawings in the time period specified in the lease agreement, the bond shall be forfeited to the agency.
D. Conflict of interest: Any lease which may violate the Conflict of Interest Act, Sections 10-16-1 through 10-16-15 NMSA 1978, shall be reviewed and approved by the attorney general prior to approval by the PCD director.
E. Final approval: Once the PCD director approves a lease, PCD will keep one copy of the lease and provide one copy to the agency and one copy to the lessor.
F. Occupancy: No agency shall occupy the leased premises until a lease or lease amendment, approved by PCD, has been executed.
[12/31/98; Recompiled 11/30/01]