Owen requested and received Last National Bank’s certification of the check even though Acton had only $9,000 on deposit.

Explanation

Details of the rights of the bank:

Bank L has the right for Individual D to make the required balance payment. Bank L has to pay the remaining balance of the check.
It is the legal right of the bank to pay off the claim with the account balance of Individual A.
Bank L can treat the payment of the remaining amount as loan given to Individual A and charge interest until it is paid back.

Details of the liabilities of the bank:

The payment cannot be stopped once the instrument is certified. As the instrument is previously accredited by the bank, Bank L cannot revoke the approval of the instrument.
Certification means the acceptance of the check according to Article 3.
The given acceptance cannot be rescinded by the bank, which, according to Article 3, makes the bank liable to the holder in due course. Individual D acknowledged the check in good faith and presented it to the bank considering it as the amount of previous debt, rendering it the holder of Individual D in due course. In due course, Bank L is liable to pay the holder.

Sample Response

Rights of Bank L:

Bank L has the right to make the available the balance payment for Individual D. The remaining balance of the check has to be paid by Bank L.
Bank L has the right to pursue Individual A for reimbursement.
Bank L has right to charge interest on the balance amount paid by it since the balance amount is treated as loan lent to Individual A.

Liabilities of Bank L:

Bank L cannot revoke the acceptance of the instrument since the instrument is previously certified.
The certified instrument makes the bank liable to the drawee.
Individual D has accepted the check in good faith and presented it in the bank considering it for value for previous debt, which makes Individual D a holder in due course. Bank L is liable to pay the holder in due course.