Ahh... That's correct. I don't know why I thought it would be encroachment. *shrug* But I did know it's a 5-yard penalty on the defense. ;o)
As for the theoretical situation: we would have an official's blunder. The referee should not have marked the ball ready for play. The defenseman should have been directed to the proper side of the neutral zone prior to chop, and if he refused then we could technically mark it ready and throw a flag for encroachment, although that would be a horrible thing to do and should never be done. LOL!
-Craig
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