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Re: Terracotta Behaviour

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We are advising on the analysis parameters for a timber framed structure that has an existing terracotta (about 12" thick) wall.  One way is to consider the terracotta under guidelines for URM and check the recommended height to width ratios.  If we do that then the terracotta can theoretically be self-supporting except for support at foundation and roof level (single storey building). 
We understand that terracotta does not behave well under seismic events, in fact we have been told that it may even destruct "explosively".  We therefore considered the terracotta as a "veneer" and added the appropriate anchoring for veneers.  Here in Canada that means anchors at 2'-0" o.c. e.w.  That in turn means that we use a material seismic coefficient of R=1.5 by considering the terracotta as part of the structural restraint (i.e. therby reducing the deflection of the primary timber lateral support system to mitigate the impact on the terracotta) or R = 3.0 for the pure timber restraint system.
1)    Does anyone agree or disagree with either of these approaches?
2)    Does anyone have experience of the behaviour of terracotta during earthquakes?
Thank you.
Thor Tandy  P.Eng
Victoria  BC