A few years ago a Cashiers check was sold to a bank customer. The funds were taken from the remitter's account. The Payee states that they received the funds, however the check has never cleared the bank. How do handle this check? It is not unclaimed so escheat would not be appropriate. The thought is it was cashed but has been 'lost' in the banking system. Any ideas?

I am not sure how you clear that from your books without escheating it. You cannot just pocket the money.