Correct.
So what happens if you have an Account at the top security level and an associated character at the bottom Rank level. Or even reverse of that (top Rank, bottom security)
Character rank, for functional purposes, means nothing. If you have a characer that's "Guild Master" rank that won't change how you interact with the site at all. All it will do is stick "Guild Master" next to your character name on the Roster.
Account rank, on the other hand gives you actual functional permissions to perform various tasks. However, for security, being givin "Full Administrative Privileges" will still not allow you to modify accounts that are of the same rank or higher.
To summarize:
All that matters from a functional perspective is the rank of the account. The rank of the character is merely aesthetic.--
It's all in the reflexes.