Quote Originally Posted by Pelion
It is better to die on your feet than to live on your knees?
Better to make a stand when you have *some* folding equity rather than when it's obvious you're simply playing "any two" b/c you have to.

And I agree on the general consenus here, the poker rules are already pretty clear about this.. it's a side-pot thing. If he can only bet 4 when the BB is 12, he is on a side-pot where everyone puts in 4 of their bets and play the rest in the main pot amongst themselves. Seems pretty standard.