Sure, its possible to DISREGARD and NOT use the L terminal and feed the loads elsewhere. The normal place is off the Load (NOT battery/starter) side of the ammeter (same terminal that wires to BAT on the VR) so its registering the net current flowing into (charging) or out of (discharging) the battery.
Yes it works if fed fuzed off the batetry but the ammeter wont see it that way. If theres already a wire from the switches input down to L on the VR you can just switch that over to the BAT on the VR for a hot voltage feed to power the lights.
If the VR's L terminal is used as it was designed for, all the current dont have to flow through the VR's internal cutout relay (on way back up to ammeter so it can then feed loads off its LOAD side), the gennys output feeds loads directly. They were "reported" to do a somewhat better job of regulation but Deere quit using them (after early letterred series) in favor of the more often used 3 terminal units
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