Unfortunately, the first volume of the Seismic Design Manual is already
published and example 42 (commentary) discusses the current language in the
UBC regarding deformation requirements of exterior panels. This would have
been the appropriate place to flag this issue and reference the Blue Book
I will research to see if we have any building design examples in Volumes II
or III (due for publication this summer and fall, respectively) that may be
used to clarify the intent. I will keep you posted.