What is the difference between a bank money order and a cashier's check???

Both cashiers checks and money order are teated as a type of check. The primary difference between a money order and a cashiers check is that money orders are usually limited in face value to specified figure, cashier checks are not. Postal money orders are limited to a maximum of $1,000 (as of February, 2006).

Also, bank money orders are not usually signed by a person at the bank, it's signed by the customer.

If they were used to pay loan proceeds is one better than the other or are they basically the same for that purpose? We only offer money orders and managment is considering switching from money orders and just calling them cashiers checks. Does anyone have any imput on this?

With a cashiers check or official check your customer will have to give you the payees name, you will type/print the check and it will be signed by an officer of the bank. You can't stop payment on official checks except in rare circumstances. You can't just call a money order a cashiers check. There are different criteria for each type of monetary instrument.

Can you give me a reference on the requirements of cashier checks and money orders?

You would need to search your State's banking regulations.

Additionally, another institution may process the items differently. Both are bound by Regulation CC, however, cashier's checks must be considered for next business day availability. Money orders may be considered an out-of-state check if they are from out-of-state.