Sorry I cannot say, you will have to test this yourself. But do let me know if it is able to! If you run into issues, you can uninstall the mod anytime without problems.
Updated the description to hopefully be a bit more concise and descriptive about what issue this mod solves. Please let me know if it makes sense, otherwise I'll go back to the drawing board.
No, the restrictions only apply to the player. I think the AI usually either donates or ransoms in friendly towns, since they hang out there most of the time anyways.
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I collecting mods on version 1.1.0 because of availability of the mod Kaoses Tweaks latest version of game 1.1.0
Please let me know if it makes sense, otherwise I'll go back to the drawing board.
Q: is AI use it too ?