What I am trying to do with each requirement is outline a condition (sometimes just all) and a specific resulting behavior.  Suppose the circumstances make an application/Agent untrusted? What is the LRS supposed to do?  Throw out the Statement?  Flag the Statement?  Not update authority?  Is the behavior variable up to the LRS?

I've updated the wording, but it is still very vague.  Can we verify the condition "in the event the account name is from the same source as the unregistered application. " is correct?