Preferred Collateral Discussion
Due to the varying ease or difficulty of collection and reliability of the various types of financial guarantee (security), Loudoun County deems various types of security as being more or less preferred for the protection of the public.
Cash is deemed to be the most preferred security because of the ease of collection and immediate availability. Letters of Credit are less preferred than cash, and Surety Bonds are less preferred than Letters of Credit. Once a Bond, Letter of Credit or cash security has been approved and accepted by the county, only a more preferred or equally preferred form of security may thereafter be substituted in place of the current form of security.