Final answer:
In Seismic Design Category D2, buildings must have braced wall panels supported on spread foundations, which help distribute loads and provide stability during earthquakes.
Step-by-step explanation:
In two-story buildings located in Seismic Design Category D2, all braced wall panels shall be supported on spread foundations. Seismic Design Category D2 pertains to buildings in regions with a higher risk of earthquakes. The code requirement for these high-seismic areas is to have braced wall panels adequately supported to withstand seismic forces. Spread foundations, also known as spread footings, are designed to distribute the load of the building over a larger area, which is essential for structural stability during an earthquake.