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My yard machine only has three pulleys. The drive and the two mower pulleys. How does the belt "go" into neutral.

Post model & serial numbers from data plate or sticker on mower.

Do you have an electric PTO clutch? If so, there is no need for idler pulleys. Please post your units model number, so we know what you are talking about.

The MTD deck moves forward as it is raised making the belt loose, then as this happens two brake pads come in contact with the two mower deck pulleys stopping the blades. No the MTD doesn't have a electric clutch. The OP is right only three pulleys and a very simple system. You will see the brake pads mounted to the step plates.

And a dirty great spring on the right hand side above the axle which applies the tension to the belt when mowing which is a PIA to get off.