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Overdrive not disengaging when shfting to 3rd 700 1987


I am just getting a 1987 740 Turbo back on the road, after purchase and rejuvenation. I notice that the overdrive is not disengaging after shifting into 3rd gear( 4 speed manual with overdrive). If I disconnect the wires to the switch on top of the transmission, the overdrive still works exactly the same. I thought that it would not work since the power goes through the tranny switch when in 4th gear. Am I correct? Anyone have any idea what is happening?

Thanks for any help.






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