Delayed Funds Availability Law and Legal Definition

Delayed funds availability means a policy adopted by banks to exercise a hold on uncollected funds that are constituted by deposited check. The length of the hold varies from bank to bank, and also varies depending on whether the check is local or nonlocal. On the average, however, banks put holds of four to seven calendar days on local checks. Nonlocal checks, both in state and out of state, are commonly held for ten to fifteen calendar days.