A topic from AEG's L5R CCG Rules forum, copied for Oracle of the Void from a copy of the forum saved in October 2015, so pages it didn't save are missing. Players' names are left out; the rules officials are named. Rulings are as they stood on these dates; later rulings, the rulebooks and the Rules Archive may differ.
A player, 24 January 2010
Hi guys,
Oyo Seido states that if you've lost honor from a card you control, you cannot use it's ability to gain honor. Does the death of a dishonorable personality count as a card you control, or is the honor loss based on a rulebook effect?
Togashi Azrael
Brook Cunningham (rules official), 24 January 2010
Hi guys,
Oyo Seido states that if you've lost honor from a card you control, you cannot use it's ability to gain honor. Does the death of a dishonorable personality count as a card you control, or is the honor loss based on a rulebook effect?
Togashi Azrael
The honor loss is from the Rulebook, not the card (see "From").
So, you may still use Oyo Seido's ability if you have lost honor from a dishonorable Personality of yours being destroyed.
Also, you're misquoting Oyo Seido slightly. Albeit not relevant to your question, I thought I'd mention that its ability is:
"Limited: If you have not lost Honor from cards you own this game and your Family Honor is 5 or lower: Gain 2 Honor."