I now have the new locks installed on the storage compartments, they came in the mail today.
As you can see, I got the optional protective covers and re-used the finger pulls from the old locks.
Hindsight being 20/20, I should have ordered the 1 1/2" lock arms. The lock arms I ordered ended up being a bit too long. I could have shortened them on the bench grinder. But included with the locks were adapters that allowed me to just use the arms off the original locks. And yes, the key is removable in the locked or unlocked position.