For all building projects where the total expenditure will be less than $20,000, no surety bonds shall be required of the contractor.  In lieu thereof, should the contractor not desire to provide a performance bond, the contractor shall provide the Procurement Services Office with the following:

1. A guaranty of the performance of work executed by all principals, partners, owners, and shareholders of the contractor. The guaranty shall be on a form approved from time to time by the Procurement Services Office
2. At least one of the following, in an amount not less than half of the total contract price:
   1. A certified check from a bank or savings and loan doing business in New Mexico payable to the Board of Regents. This check shall either be held by or cashed by the university without interest due the contractor.
   2. An irrevocable letter of credit from a bank or savings and loan doing business in New Mexico in favor of the Board of Regents.
   3. In all such contracts where bonds are provided as set forth in this rule, at least 50 percent of the monies due the contractor shall not be paid by the university until after completion satisfactory to the university.