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In high school ball, my understanding is a team can buy an "extra/excessive" time-out with a T. I've always penalized when discovered, but allowed them to finish the time-out. If they want to keep taking excessive time-outs, I will keep giving them T's.
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My understanding is that, if excessive time out is called after already being T'd for calling too many, you do not allow them to conference, they just get a T. shoot the fouls and change possession.
I might be wrong, but about 99% sure of this.