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DISPROPORTIONATE DAMAGE. A condition of earthquake-related damage where:
1. The 0.3-second spectral acceleration at the building site as estimated by the United States Geological Survey for the earthquake in question is not more than 0.40 g; and
2. In any story, the vertical elements of the lateral force-resisting system have suffered damage such that the lateral load-carrying capacity of the structure in any horizontal direction has been reduced by more than 10 percent from its pre-damage condition.