If you check 1 and 2, and 2 has holding, it will take those holding points before it takes any current points from contract 1.
Basically the system uses all holding, borrowed, and banked points from all contracts checked, before it goes back to contract 1 and uses up the current.
There is a screen right before you book that makes it seem like maybe those restricted points won’t be taken, but they are as soon as you confirm.