When I deposit a check in my bank, the bank credits the first $100 of the sum immediately and the rest of the sum is credited the next day, usually. I know that it's not a real clearing - i.e. if the check happens to be bad (never happened to me, but so I heard) it can come back a long time after and the funds will be taken back. My questions here are:
- What are the laws/regulations about the crediting of the checks? I.e. is there some rule that says to my bank "you must credit the account in X days" or they just decide however is convenient for them?
- Is there any official period after which the check becomes "final" - i.e. one can be sure that the transaction is never reverted because the check owner's bank has approved it? Is there any time limit by law/regulation that governs that?