received a check from state farm...deposited in bank..it cleared..few days later, it bounced...bank says we have to pay back what we spent..we were sf

Ask a local lawyer. I am not sure about this but under the UCC you may have been a holder in due course and good faith and therefore not liable for the bank's problem. This is of course, if you are in good faith. if you knew you shouldnt have received the check, you do not have good faith.