Transfer Case Encoder
WARNING: This page is about a different car, the 2002 GMC Sierra, 2002 GMC Cab & Chassis Sierra, 2002 Chevrolet Silverado, and 2002 Chevrolet Cab & Chassis Silverado. However, it is still accessible from the selected car via links, so may be relevant.
The encoder is mounted to the transfer case encoder motor assembly and is replaced only as an assembly. The encoder converts the sector shaft position (representing a mode or range) into electrical signal inputs to the transfer case shift control module. The module detects what position the transfer case is in by monitoring the 4 encoder channels (P, A, B, and C). These inputs translate into 2HI, 4HI, NEUTRAL, and 4LO or whether the motor is still in transition between gears.
The transfer case encoder channel circuit may be monitored using a scan tool.