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B&D Bonds-General

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1. What is a bond?

The term bond can mean several things. In this case, the County may accept collateral from a developer to ensure the construction of public improvements like roads or it may guarantee that a construction site can be stabilized to prevent erosion and environmental degradation. The developer could be someone building hundreds of houses, an office building, or it could be your neighbor build a garage in the backyard. If construction is still occurring in your neighborhood it is probable that the County still holds one or more bonds for the project.

2. What kinds of collateral (bonds) does Loudoun County accept?

Loudoun County accepts three types of collateral:
-Cash Escrow, in the form of a cashier’s check or certified check.
-Letter of Credit from a bank with offices in Virginia, Maryland, the District of Columbia, or nearby counties in West Virginia, and with a Highline rating of 35 or higher. See FSM §8.303(C) for specifics.
-Corporate Surety Bond from a provider with an A. M. Best rating of A or A+ and a size category of VIII or larger. If your chosen company meets the rating criteria, but not the size criteria, please call Bonds Management at 703-737-8942. See FSM §8.303(A) for specifics.

3. Are there any fees associated with posting a bond?

There are various fees associated with bonds. Please contact the Bonds Management team or Please consult the Building and Development Fee Schedule for associated fees.
Fee Schedule

4. What is a W-9 form and why do I need to submit it?

A Substitute W-9 form is required when cash escrow is submitted as collateral (a bond). It is an IRS form that provides taxpayer information to the County so that interest on the cash bond may be reported to the IRS. A Substitute W-9 form is only required if you are submitted a CASH bond and is not needed for corporate surety bonds or letters of credit. The Substitute W-9 form can be found
here

5. How long does it take to get my cash bond back after it has been released?

Once the County sends you a letter telling you that the bond has been released, it will take up to three weeks for the County Treasurer’s Office to process the release and cut the check.

6. I just purchased a project that already has a bond on it. How do I post my new bond?

For the Erosion and Sediment Control Bond simply obtain a new bond meeting the County’s requirements and submit it along with a new Grading Permit Application with the new owner’s information to Building and Development.

For a Performance Bond you must submit an executed Addendum to Performance Agreement – New Owner and the new collateral. For more information use the link to the Substitutions Page found below.

Substituted surety must be of equal or better preference. This means that if the original collateral was a corporate surety bond, the County will accept another corporate surety bond, a letter of credit, or cash escrow. If the original collateral was a letter of credit, another letter of credit or cash escrow may be substituted. Cash may only be substituted for cash. New letters of credit or corporate surety bonds must meet the County’s standards found in FSM §8.303(A) and (C).

Substitutions Page

7. My bank (or insurance company) doesn’t like some of the language in one of the County’s templates. Can we make changes and submit those for your review?

No, you may not make changes to the County templates. Any documents with changes will be returned to you.

8. The bank that issued my letter of credit no longer meets the County’s minimum standards. What can I do?

You can post a letter of credit from another bank or post cash. If the bank’s Highline rating is between 30 and 35 the bank can provide financial information and the Bond Committee can consider accepting letters of credit from that bank. New collateral must still meet the County’s standards found in FSM §8.303(C).

9. My project is now released. How do I get the original corporate surety bond or letter of credit back?

The standard procedure is to send the original instrument and the release letter via certified mail to the address we have on file. Please call (703) 737-8942 if you would like to verify that the address we have on file is correct.

10. Is there a way to ask you a question that isn’t in this list?

Sure. Call the Bonds Management Information Line at 703-737-8942 and leave us a message. You’ll get a call back within 24 hours (but it is usually much quicker). You can also send us an email at bonds@loudoun.gov.

It helps us to answer your question more effectively if you tell us some information when you call or email:

-Name of the project.
-The address (if you are a homeowner)
-The bond number
-The County Application number
-Erosion and Sediment Control number
We want to make sure your question gets answered so please don’t forget to leave us your name and call back number or email address.

11. There is an erosion problem in my neighborhood. Who should I call?

If you have a concern or complaint about erosion and sediment control, please call Erosion and Sediment Control at 703-777-0116.