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Overstrength Factored Load exception

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When considering portions of structure such as In-plane discontinuity shear walls, the older codes required the overstrength factor formulas to be used with an exception that the Em need not exceed the force that can be developed by the system.
Is that exception still in the IBC 2006 or ASCE 7-05? If so, where?
S.Macie, P.E.

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