Assume Marge and Homer form a corporation and each own 50% of the outstanding shares. The board of directors is composed of just the two of them. Marge wishes to obtain a personal loan from her bank for $100,000, but the bank requires someone to co-sign the promissory note. Marge co-signs the note in the name of the corporation and signs as the president. Later Marge defaults on the note, and the bank sues the corporation for payment.