I thought you wanted it to be a function? What about using INSTR and naming it something that tells you what it does?

Code:
CREATE OR REPLACE FUNCTION server_name_has_cn 
   ( p_server_name  IN VARCHAR2)
RETURN BOOLEAN
AS
   v_char_location BINARY_INTEGER;
   v_search_str    CHAR(2) := 'CN';
BEGIN 
   IF INSTR(p_server_name, v_search_str) > 0
   THEN
      RETURN TRUE;
   ELSE
      RETURN FALSE;
   END IF;
END server_name_has_cn;
instr function