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Setup: IG (with a PSB) vs SM with an IC that has Rites of Battle. A SM Tac squad takes 3 wounds and gets hit with Weaken to drop their Ld down (lets say to 2).
Rather than test for fallback on the reduced Ld, can the SM Tac SQD use Rites of Battle to make the fallback test on the ICs current Ld 10.

(EDIT) IMHO that would be allowed since it is pretty specific in the Rites of Battle write-up. Of course if you have 2 PSBs and can hit both the squad AND the Character, then the guy is boned (unless it's Calgar and his "dice are for wimps...I choose to pass/fail" rule).

On a similar note, has the issue of Weaken Resolve vs Stubborn ever been resolved officially?

Yes it would be allowed; the only way to do this would be to drop the ICs Ld AND the other units Ld at the same time, so two PBS