One requirement of being a true Paladin is being humble (in fact, in the PnP games, Paladins were required to give up all worldly posessions), and the sword was a gift from one very proud church's God. After sitting on the alter for many years, with but one priest still praying for it, he discover that the enchantment had taken long ago, an attempt to make the order more humble. When a visiting priest of Helm scoffed at it, the sword's abilities were shown, but the sword has no idicators of being magical, or holy, which explains why there is no blue border.
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