The Update registry key has value entries which control the application of System Policies. Edit:
UpdateMode is a REG_DWORD with the data values:
0 - A policy file is not downloaded from a server and is not applied.
1 - NTconfig.pol is downloaded ( if present) from the NetLogon share of the %LogonServer% and applied.
2 - The UNC path of the policy file is read from NetworkPath and if present, downloaded and applied.
NetworkPath if a REG_SZ value that contains the full UNC path to the policy file. It is only used if UpdateMode is a 2.