Controversial issues and their resolutions.

Banned heroes can be used until they reach level 3, after which they must be dismissed on the same day.

I have encountered this rule in a slightly different wording:
not "until they reach level 3," but "until they reach level 2."

Now, the question.
Let's say Alamar, level 5, is imprisoned.
What happens then? Does he have to be dismissed on the same day?

And the second question: let's say the released Alamar has expert literacy;
can it be used to teach another hero spells?

P.S. I suggest amending the rules:
instead of limiting the level to 3, introduce a limit on leveling up to 2 or 1 levels.