Are the non-bind values being passed to SQL Anywhere as quoted string literals? If so, then \n is well documented in the SQL Anywhere docs, and yes, \n embedded inside any string literal will be interpreted as a new line. The important context is string literal. For example, here is what happens using dbisql:
CREATE TABLE t ( s VARCHAR ( 100 ) ); INSERT t VALUES ( 'Hello \n World' ); COMMIT; SELECT * FROM t; 1 row(s) inserted s ------------------- Hello World (1 rows)