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Cold-formed steel connection

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A question for those familiar with AISI 2001 Specification for the Design of Cold-Formed Steel Structural Members.
 
The bolt bearing strength in section E3.3 can be calculated in either of two ways:
(1)  Strength without Consideration of Bolt Hole Deformation  Pn = mf x C x d x t x Fu with resistance factor phi = 0.60, or
(2)  Strength with Consideration of Bolt Hole Deformation  Pn = (4.64 x alpha x t + 1.53) x d x t x Fu with resistance factor phi = 0.65
My question is, how do I determine which equation to use, is it just a matter of personal preference, or is there something in the Specification that dictates which one to use?  I couldn't see anything in the Commentary or anywhere else to answer my question. 
 
In my example with d = 3/8", t = 0.06", Fu = 55 ksi, mf = 0.75, C = 3.0, and alpha = 1, method 1 gives 2.78 x 0.60 = 1.67 kips, while method 2 gives 2.24 x 0.65 = 1.45 kips (15% less).  Obviously I'd like to use the first method, but I don't know when it is valid to not consider bolt hole deformation.  Any input would be appreciated.
 
Thanks,
Steven Stoppkotte, P.E.