NEC 2005 Handbook page 191

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It is talking about the difference between a separately derived system and a non separately derived system. Please correct me if I am wrong, it looks like the grounded conductor (neutral) is not switched at the transfer switch in a non serarately derived system and is switched in a separately derived system.
 
It is talking about the difference between a separately derived system and a non separately derived system. Please correct me if I am wrong, it looks like the grounded conductor (neutral) is not switched at the transfer switch in a non serarately derived system and is switched in a separately derived system.

What you see is correct. When the neutral is not switched it is not considered a SDS because you are still connected to the utility for grounding and bonding.
 
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