As others have said its to prevent run on when shut down hot. I have had two fail on my 706 over the years, the coil in them burnt out. When it is energized it acts as the needle valve to control fuel flow at full throttle. 560's had just a adjustable screw in place of the solenoid. You can by the screw and collar from CNH and install them in the 706 carb. Cheaper than a new solenoid but you will have no run on protection.
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Today's Featured Article - Fabricating Sidesheets - by Chris Pratt. The easiest and best first-time project for wanna-be sheet-metal workers like myself is flat or nearly flat metal cut and drilled to be a tractor's sidesheet. A sidesheet is sheetmetal to cover either the engine as in the case of early Oliver's, Massey-Harris' and many crawlers or the wiring and electrical components as in the case of the Massey-Harris Pony, Allis Chalmers' D Series (D-14, D-15, D-12, D-10, D-17, and D-19). The need for fabricating becomes obvious when you go to buy any of these
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