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That is normal. When you turn it on current flows through the coils primary windings and creates a magnetic field. When you turn it off the field collapses and induction into the secondary (high voltage) windings discharges across the plug gap. When the engine is running the points close then open (3 times per rev) providing ignition. If the engine happens to have come to rest with the points in the open position, switching the key on and off will have no effect.
regards,
Phil
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