Thanks for the responses guys. I used to practice struct eng in Florida, so calling out a bunch of holdowns never got questioned. But I live and work in Alabama now and of course construction practice are different from region to region. I'm just trying to find a way to reduce the amount of holdown hardware, safely resist the applied loads, and still meet code detailing requirements.
I found in the prescriptive requirements of the IRC Commentary that states the holdown is connected to the tension chord. I did not find in IBC Commentary where is states the same thing, only that the holdown is "typically" done this way.
I agree with the point about the sill material being of lesser quality, but I'm not sure about the cross-grain bending point. Doesn't the panel stiffen the connection of the tension chord to the sill plate enough so that the plate doesn't go into any weak-axis bending? Also, you said it wasn't allowed, where does the code say that?
This particular bldg is not a residence so I am using the IBC. And it seems that so many times in our profession we are left to our own interpration of the code, but I would always like to double-check the fine print to eliminate that need to interpret.