There are no restrictions to a lateral pass. Since a lateral is not considered a forward pass, it cannot be 'incomplete' ... if the ball hits the ground play continues as if the ball was fumbled. If the player that catches the lateral pass is behind the line of scrimmage, they may then attempt a forward pass. While there can be only one forward pass on a play, there may be an unlimited number of lateral passes on a play. Any player on the team may throw a lateral pass and any player on the team may catch a lateral pass.
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a sideways pass parallel to the scrimmage line but not beyond the scrimmage line.