If you are on the green, and you are putting, if the pin is in the hole and you strike it with the ball, you receive a two shot penalty in stroke play or loss of hole in matchplay. You must also play the ball as it lies, so if the ball is holed, it is counted as holed (don't forget the penalty)
If the pin is set at the side of the green and you hit it, the penalty is still the same.
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