II Morrow Inc. NMC 2001 Operating Manual page 263

Navigation management computer
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Operations
Approach Procedures
When you are ready to depart the hold, you enable sequencing with the
OBS/HLD button. If you are on the "TO" side of the waypoint, the
flight plan will sequence the next time you cross the waypoint. If you
are on the "FROM" side of the waypoint, the flight plan will sequence
immediately. The following example shows holding at the Newburg
VOR (VBG) with 020° inbound selected as the "OBS" course to UBG.
A special case exists when holding at the FAF. The waypoint will not
be treated as the FAF until sequencing is resumed inbound to the
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