When a check is deposited in a bank, does the money belong to both the check's issuer and the bank?

You've asked two different questions. From the title of your post - if you want to return money to a person whose check you have cashed, send the money to the issuer of check.

From the body of your post - when you deposit a check at the bank, the money belongs to you once the check has cleared. But during that check clearing process the bank actually has the money, with essentially an IOU to put ithe money into your account when it clears.

You've asked two different questions. From the title of your post - if you want to return money to a person whose check you have cashed, send the money to the issuer of check.

From the body of your post - when you deposit a check at the bank, the money belongs to you once the check has cleared. But during that check clearing process the bank actually has the money, with essentially an IOU to put ithe money into your account when it clears.


When the check clears, is the money mine-no longer the banks?

Correct.

The check clears when the bank has actually received the funds from the issuing party/bank.

Sounds to me like someone is planning on kiting a check... because why else would someone ask such a question? The money is going to be available long before the check clears... or is discovered to be bad or fraudulent in many cases.

Meaning... if it bounces later that money ISN'T yours and they can and do have the right to take it back... even through legal action if need be.

In short....It might or might not really be yours, at least for a few weeks.

This is the second thread you have started about this issue. Please keep the discussion to one thread.

When you deposit a check in a bank, the bank will generally hold those funds until the check clears. The check clears when the bank from the issuing account transfers the funds. A check might clear earlier depending on bank policy. Usually a bank will not cash a third party check unless the depositor has enough money to cover the checks. The bank can then debit the depositor's account if the checks don't clear.

In another thread you claim this was done 2 years ago. If anything was going to come back to haunt you it would have happened by now.

You are anonymous here. Don't ask hypothetical questions if this pertains to the check from life insurance.
We still don't know what the real story was there.
There are laws that allow 'bank mistakes' to be reversed.
I once went from 35,000 to 350,000 in a Fidelity account because of a mistake. I had it 10 days! Didn't dare whisk it away to another bank because of that law.