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That is certainly correct due to the erratas. I suppose a better example for what he was trying to find out is Moses gets blocked by King of Tyrus and somehow during the battle Moses is negated. KoT is not then negating everything, since he was prevented at the time of activation. Correct?
Does rulings such as those mean that you cant use Foreign Sword to negate a card that would be negating a band prior to the band activating? Example is Tower of thebez is active and you foreign sword it off a red bander, does that mean you can band?