It could have been compliant when installed but it is no longer compliant to install one today.
There have been major issues with this type of installation paralleling the neutral and equipment grounding conductor between the transfer and the generator itself. This leaves the frame of the generator at the same level as the circuit being supplied.
If the neutral was lifted from the frame of the generator and one leg of the 240 volts then shorts to the frame of the generator there is no fault current path to open that leg and then the equipment grounding conductor of the generator is raised to the same level as the shorted leg.





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