In episode 61, look up in wiki. Thier is proof that this card is not working the way intended to be. Here are the text from Chazz Duel.
Turn 3: Chazz
Chazz draws "Graceful Charity" and subsequently activates it to draw three cards and discard two. Chazz then activates "Level Modulation" to allow Sartorius to draw two cards and allow Chazz himself to Special Summon "Armed Dragon LV7" (2800/1000) from his Graveyard in Attack Position, ignoring the summoning conditions. Chazz then Tributes "Armed Dragon LV7" in order to Special Summon "Armed Dragon LV10" (3000/1000) in Attack Position.
Nowadays though, cards in anime tends to work similarly in real life, because people complained that they can't reproduce the cool actions in anime with the same cards.