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It is a terminal between battery and cable, that allows you to diconnect the majority of the power, thereby immobilising the car but leaving enough power to run clock, alarm, etc. etc. Once the 'key' is removed, only the key being re-screwed in, can start the car again, if an attempt is made to start the car without the key in place a fuse blows and totally disconnects the car battery.
Tom
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