laxly schema valid?

Is it correct to say that "Laxly schema valid" means that if a validating
XML parser is operating in "lax" mode
it will schema validate what it can, but not validate that for which it
can't find the schema?

If that is true, then what does it mean to require an implementation to
"generate" laxly schema valid XML?
Shouldn't implementations generate schema valid XML, but receivers have the
option to laxly validate?

(This is in section 3.1, The EncryptedType)


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Frederick Hirsch
Zolera Systems, http://www.zolera.com/
Information Integrity, XML Security