Engine Theft Lock?? Anyone???

My '97 Lumina has this little chip attached to the dash under my steering wheel, if i take the chip out, there is a red light that blinks n my engine wont start unless i put the chip back in

i know this is a little hard to understand, but does anyone have information on why n how this thing is used??

thnx

If I am not mistaken, it works the same way as a kill switch does.

It is connected to the ignition switch, when the chip is in place there is a closed circuit going and when you pull the chip out it opens the circuit and the car wont start.

ah, i got it now, thnx for da info buddy