Situation
Appendix MR applies. Yellow on starboard tack and clear astern, becomes overlapped within two of her hull lengths to leeward of Blue, also on starboard tack. Yellow sails above her proper course.

Question 1
Does Yellow break rule 17?

Answer 1
Yes.

Question 2
If the answer to question 1 is yes, does Yellow break rule 17 if, while sailing above her proper course, she is maneuvering to take a penalty?

Answer 2
Yes. A boat taking a penalty or manoeuvring to take a penalty is not sailing her proper course, as stated in MR1.1(a). However rule 17 continues to apply while the boats remain overlapped within two hull lengths and on the same tack. Therefore when Yellow sails above her proper course, she breaks rule 17.