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The motor overload device is typically located in the motor starter, which serves as a crucial component for the protection and control of electric motors. The primary function of the overload device is to monitor the current flowing to the motor and to provide protection against overheating due to excessive current. If the current exceeds a predetermined limit for a specific duration, the overload device will trip, interrupting the power supply and preventing potential damage to the motor.

Motor starters come equipped with various protective devices, including overload relays, circuit breakers, and contactors. By integrating the overload device within the motor starter, it streamlines the motor protection process, making it easier to manage control and protection functions in one unit.

The other options presented do not serve the primary role of monitoring and protecting the motor against overload conditions. Circuit breakers are used for overcurrent protection for the entire circuit but do not specifically protect motors in the same manner as an overload device. Transformers are used to change voltage levels and do not provide overload protection for motors. Capacitor banks are involved in power factor correction and energy storage but do not have functional responsibilities similar to those of a motor overload device.