Throw In Location in Backcourt After Time

[vesemurphy]

Need a little help here. I officiated youth through varsity high school basketball for about 6-10 years...granted that was 12+ years ago but I've managed to keep abreast of most of the major rule changes to this level of hoops.

Yesterday I was at the tail end of 7th grade boys game at my daughter's school. Her classmates team was down 1 with .9 seconds remaining in the game. The opposing team was shooting 1 and 1 and missed the first shot. Our team rebounded and attempted to call timeout but the buzzer sounded. The officials granted the timeout, that was requested under the opposing team's basket, and had .5 seconds put on the clock. They then put the ball in play at half court. One of our kids, a neighbor of ours, put up a prayer that circled around the rim and almost went in for the game winning shot. A few minutes later I went over some parents I know and explained to them the officials should not have put the ball in play at half court. Only the NBA has this rule.
I also talked to some of the boys after the game and told them that the ball should be put in play at the spot where the timeout was called.
Word got back to the mom/coach that I told the boys they shouldn't have won if the shot was made. I tried explaining to her that I just wanted the kids to know the correct rule. Now she's telling me that the official has the option of putting the ball in play at half court and she's pissed because she thinks I don't know the rules and made the boys feel bad.

What is the specific rule in the book that applies to this situation? I'm thinking it's:

7-4 The ball is awarded out of bounds after:
ART. 4 . . . The ball becomes dead while a team is in control, provided noinfraction or the end of a period is involved, as in 7-5-3a.

7-5 ART. 3 . . . Designated out-of-bounds spot throw-in nearest to where the ball became dead:

Can someone help me out? Thanks!!!