Prosperity Bank holding my check but didnt inform me that a hold would be placed. Is this Illegal?

Ok...I just recently opened a new account at Prosperity Bank and I put 150.00 in the account to start it. I wanted to close out my old Chase account before they hit me with my monthly fee so the teller told me that i could just write a check off my chase account and deposit it in my new account. I did that...it was only for $137.00 and I got a slip that had that same day's date on it(fyi - the check is local, same city). They DID NOT tell that there would be a hold AT ALL placed on my deposit. I waited until the next day to check my account online and my available balance is still the same. I'm like WAIT A MINUTE...I thought the checks are all processed throughout the middle of the night? are they now gonna hold my funds without telling me? If so, why didnt they just tell me to go to the bank, withdraw the cash and deposit the cash into my account which I would have gladly done. Now I'm worried that it will be weeks (I have had other accounts that took weeks for the check to clear) before I can use any of my money...LEGALLY can the banks do this? They didnt inform me of any holds that were to be placed on this check. I thought that was the law? what should I do now? anyone have any experience with this?