Banking - time for a check to clear?

I wrote a check to a contractor on Friday. It cleared my bank on Monday - and I have produced a copy of the cancelled check from my bank. It is Thursday and the contractor is refusing to work onsite until the check 'clears'. They are saying it hasn't cleared their bank.

My understanding is once it is out of my bank (and has been for 3 days) - it is considered 'paid' - regardless if her bank holds funds. At this point, i couldn't withdraw the funds - so there is no reason to not proceed.

My question is - where can I find the statute (for Virginia) that says this. Everybody 'says' it - but I need it in writing.

*EDIT* So much for free legal advice - my 'everybody' was my bank and a paralegal! Hey, Richard - do you know where I can find that statute? And since I'm quite sure she won't tell me what bank she has - how can I know she's telling the truth. Also note - part of the amount I gave them was cash - to allow for imemediate order of material - they accepted the cash to do that - and aren't.

Sorry, "everybody" is wrong.

A check 'clears' twice. First your bank verifies that you have the funds, and withdraws them from your account. A call to your bank at this point will result in them telling you that your check has cleared. Then the bank transmits the funds to the local Federal Reserve Bank, who transfers them to the receiving bank.

Depending on what States the headquarters of the two banks are in, the funds might even ahve to go from your bank to the local Fed to the other banks local Fed, and then to the other bank. It can take a few days.

The contractor is quite within his rights not to consider himself "paid" until HIS bank has the funds.

Richard

I would go to your bank and ask them. or you could contact a lawyer in your state. Im sure that they would know the best route for you to take.

Id say from the FDIC..Federal Bank Deposit Insurance Corporation... It would depend on the banks policy where he deposited it. However if the bank is a member of FDIC it will subject to their regulations. Also if his bank is a State Chartered bank, it will be regulated by the Virginia Department of Banking. If it is a National Bank, it will be regulated by the Comptroller of the Currency. However the best thing to do is get the name of his bank from the back of the check and call and ask them what their policy is.

It's a federal law, I believe, not a state law. See if this (U.S. government) website helps: http://www.helpwithmybank.gov/faqs/banki...