LDUB,
I believe that you have identified a subtle distinction that is correct - whether FED or OBR.
The "TOP occupied base" is the last base that the runner had legally touched or passed at the time that the pitcher initiated his delivery.
Now 99% of the time it's not going to matter. But, a lot of strange things can happen in a baseball game, and it's not inconceivable that you will find yourself umpiring in a game where the "1%" does happen. It's best to have a proper understanding.
JM
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