All about Assembly Loader

Assembly loader

If such a file exists it will look inside of it if the version of the assembly that we are trying to load matches the version/versions range written in the policy file. If it does, it will try to load the assembly with the version specified there. If no such policy file exists, it will try to load assembly from the GAC.
If it will fail to find it in the GAC, it will start to search in the system's search path.
In web applications it will also include the application's Bin directory in the search path.