The natural "inclination" of the upper, wider, 12 ft. wall will be to overturn and pull up the outer sections of the wall. I think that because of this you do need, or want, to use the outer edges of the 12 ft. wall to place a hold down - extending down through the lower wall.
I'd agree with Mike, in fact after posting I did think of this, that there ought to be a hold down at the end of the lower, 9 ft. wall of course -but also perhaps extend it up through the 12 ft. wall as well.
If you ignored the upper 3 ft. extension, hokie, I would worry that without the extension the 12 ft end post down to the footing, then you'd get a distress, tear, cracking, in that 3 ft. extension as it would stretch out or move much further.