House on property which will significantly increase value

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Carl leases 2 acres of land to his friend, Larry. Larry intends to build a house on the property which will significantly increase its value. Larry applies for a $1 million loan from Fleet Bank to build the house. Carl orally promises the bank that he will be responsible for paying back the loan if Larry does not. On that basis the loan is approved.

Reference no: EM131615847

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