faded letters / ink deteriated
a. it looks more a samech, b. there is a definite gap on the left part of the moishav turning it into a psucha -
how do we relate to this?
There is a famous teshuva of the Chatam Sofer (YD simen 256) that ink that fades naturaly by time is still kosher although the hallacha is that ink must be black, since this is the natural decline of color it is still accepted [as long as it is still a brown color, and not totaly faded.]
I think this heter does not apply in our situation. a. This is not a natural fading over time, but a quick deteriation because of a problem that is affecting the ink, the ink is not fading, it is falling off.
b. I don't think that the Chatam Sofer's heter allows considering the original ink, when there is an obvious shinuy tzura contrasting the bright ink from the faded ink. In regard to the last issue maybe a shaylas tinok would be called for, unless an extreme situation which is obviously a shinuy tzura.
Below are examples of old ink fading.
I must emphasize: the images given are so delicate, so any variation in size (smaller - condenses the picture) or color, may extremely change the situation. I am giving these images to understand, the issue. These are issues that are very hard to handle through a scan, because of the variations that occur in size/photo color from reality.