If I google for the offending part, I get a reference to a tankless on-demand water heater.
Suburban model IW60
___________________________________________
From the website:
Two built-in Freeze Protection features:
Powered (both gas and electric supply required)*
Non-powered mechanical valve**
* Active (powered): unit recognizes incoming water temperature at 40ยฐ F, turns on and cycles to keep water above 40ยฐ F.
** Passive (non-powered): thermally sensitive freeze protection valve opens at 34ยฐ F, draining water from the system
From the manual:
If the On Demand Water Heater is dripping water into the drain line, in
cold weather, when the water supply temperature is below 38ยฐF and
does not stop when the water temperature rises above 38ยฐF, call your
local service center. The valve may be disabled by turning the needle
valve located on the front of the On Demand Water Heater 6 and 1/2
turns clockwise. Closing the valve will disable the mechanical freeze
protection feature. The water system must be drained when not in
use to avoid damage caused by ice expanding in water lines if valve
is closed.
___________________________________________
It sounds like it should close without damage to the valve once the temp rises above 38 degrees. if you still see water draining when it warms up then it may have been damaged, and you can manually close it until it can be fixed.
That's how I read it.
CC