Army morale dought

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Basic question:
Does Loyalty affect the army performance in battle?
According to wiki it just increase the chance of one guy leaving the army, or maybe I have read it wrongly )

[psantos Profile E-mail psantos]

Currently, contingent loyalty has no effect in battle. It initially depends on population loyalty, it gets higher when the army is properly fed and paid. When these things fail, the loyalty starts to go down.

If the loyalty is low enough, the army can revolt, and become a "Neutral Unit".