Mecha Corporation, a small company, recently approached a bank for an equipment loan. For the company, the

loan would be large and would require at least ten years to repay. The bank was willing to consider making the loan,

but only if the company's common stock would be assigned as collateral. So if the company fails to repay the loan

the ownership of the stock will be transferred directly to the bank. Why would the bank want an assignment like

this? What advantage of the corporate form of organization is relevant here?