No, that is why they were issued to individuals in Anarchy not to the alliance.
They said, your nation is knackered, its a game if you want to opt out of the war you can by declaring your PoW status for 7 days. While in that state, Aztec will protect you from all comers, ie you are safe to rebuild.
There wasn't even a restriction on what the nation did in seven days, rejoin NL was perfectly acceptable.
You don't get softer surrender terms than that.
In truth, I can't see how you managed to read anything else into even the bit that you quoted other than the stuff Mayzie and bunnet have said.
While in this state you will be protected by Aztec
Protected from who? Answer 'all comers', which I guess meant even WAPA.