Can someone define and give an example of churning, as it is related to monetary instruments?

I have a monetary instrument in the amount of $100,000.

I come in to the bank once a week to negotiate the monetary instrument, receive $9,500 in cash and get a new monetary instrument for $90,500.00, then 81,000.00, then 71,500, etc...

They buy a monetary instrument for a certain amount and then exchange that instrument for one or more monetary instruments, sometimes adding or subtracting funds. It creates a long paper trail that might be hard to unravel.

Sometimes referred to as nibbling

The check issuing bank can put these annoyances to bed by simply refusing to exchange its cashier's check for another one a bit smaller and the difference in cash. How do you get away with it? You aren't required to sell anyone a cashier's check.

Give them two options: deposit it or cash it fully.

We have the customer deposit the check (issued from our bank) into their account, then sign a withdrawal slip/check to purchase the next Monetary Instrument or to receive the cash requested. If they do not have an account with us, we refer them to their bank. If the check is stale dated, we give them a business card and let them know their bank can call use to confirm the checks is valid for deposit.

And is there a reason you do not just say no?