Cashing third party checks
My grandaughter's husband was paid $3,000 by check for work performed on someone's home. When cashing the check at his own bank he was told he would need to wait five (5) days before the funds could be released. After the required 5 days the bank honored the check and paid out the money. Sometime after this, a bank representative contacted my grandaughter by phone and told her the check was no good and she and her husband must make good on the $3,000. She told the representative that since the bank cleared the check after the required waiting period and paid out the money they themselves should be responsible and not she and her husband. After much screaming and threats by this bank representative the bank has now filed a suit against my grandaughter and her husband with a hearing scheduled for late July.
What is the law in this case?