Cactus Game Design Message Boards

Cards reset in the following locations: Removed from game, discard pile, hand, deck.

The only exception is "per game" abilities. Those never reset.

EDIT: To answer the second part of the question, yes a converted character resets in hand. Forgiveness of Joseph is a good example of this since it's a mass convert but allows the opponent to return them to hand (thus resetting them) if they choose.

Another Question:
What if a character is reduced and captured, then returned to territory. Would it go back to face value?

No.  Captured characters are in territory, and therefore do not reset.