The N word won't be tolerated, because it so volatile. It has only two meanings, the most prevalent being a derogatory term used for blatant hate speech. The other definition of the term isn't even unanimously respected in the black community. There's really no place for it any discussion.
When it comes to racial slurs in general, that's the blanket policy. There are exceptions, moderation is subjective and that's something to take into account when you extend a moderator's status or not.
Also, for anyone who cares, regardless if you extend MAF's moderatorship (hail!), he will continue to be in our secret cabaal and will retain technical powers on the forum no matter what. Just because he can't ban your ass, doesn't mean he can't be vocal about the policy of the forum, how it's run, etc.