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As far as I remember, yes, but I can't remember the exact text of the LS.
What happens If the ls is negated in later turn?
Wooah, what? Place abilities don't hold the cards they place in their location anymore? Blocking from your land of bondage is normal?
It was placed there with a further direction on how to get un-placed. Yes, it's in your territory, but it's also in your Land of Bondage. I can't see anything that would let you block with one. You've never been able to just block with a Pale Panic Demon (sounds odd, but it came up as a way to stop your Hero from being banded to without running WoP and risking Goliath auto-win before Shrine existed) or a SWS that was exchanged with a Panic Demon and they weren't even in LoB, and at least a few years ago you would not have been able to just block with a siteguarded or Possessed'd EC.