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Overloads are installed before circuit protection, in series with the line leads, as this arrangement allows them to effectively monitor the current flowing through the circuit. By placing the overload in series, it can measure the current that is being drawn by the load directly. If the current exceeds the predetermined threshold, the overload will trip, preventing potential damage to the equipment and the circuit itself by interrupting the flow of electricity before it reaches the circuit breaker or fuse. This proactive protection mechanism helps ensure the safety and longevity of the electrical system by addressing overload conditions before they can escalate into more serious issues.

The arrangement of the overload is crucial because if it were placed after the circuit protection or in parallel with the load, it would not be able to fulfill its protective function effectively. Additionally, positioning it at the control panel does not allow it to monitor the current flowing through the load directly. Thus, placing it in series with the line leads is the optimal configuration for safeguarding the circuit.