California § 7113.5 - The avoidance or settlement by a licensee for less than the full amount of the la
Full text of California Public Contract Code - PCC § 7113.5 — The avoidance or settlement by a licensee for less than the full amount of the la, with citation guidance and answers to common questions.
§ 7113.5. The avoidance or settlement by a licensee for less than the full amount of the la
The avoidance or settlement by a licensee for less than the full amount of the lawful obligations of the licensee incurred as a contractor, whether by (a) composition, arrangement, or reorganization with creditors under state law, (b) composition, arrangement, or reorganization with creditors under any agreement or understanding, (c) receivership as provided in Chapter 5 (commencing at Section 564) of Title 7 of Part 2 of the Code of Civil Procedure, (d) assignment for the benefit of creditors, (e) trusteeship, or (f) dissolution, constitutes a cause for disciplinary action. This section shall not apply to an individual settlement of the obligation of a licensee by the licensee with a creditor that is not a part of or in connection with a settlement with other creditors of the licensee. No disciplinary action shall be commenced against a licensee for discharge of or settling in bankruptcy under federal law, the licenseeâs lawful obligations incurred as a contractor for less than the full amount of the obligations, so long as the licensee satisfies all of those lawful obligations, to the extent the obligations are not discharged under federal law.
Source: official California text · Last verified 2026-08-27
Frequently Asked Questions About California § 7113.5
What does Public Contract Code - PCC § 7113.5 cover?
Section 7113.5 ("The avoidance or settlement by a licensee for less than the full amount of the la") is part of the Public Contract Code - PCC, the codified statutory law of California. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite California § 7113.5?
A common citation format is "Public Contract Code - PCC § 7113.5" (California). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of California law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the California official source linked on this page or consult a licensed California attorney.
How does California § 7113.5 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in California can advise on how this section applies to you. Contact your state or local bar association for a referral.
Sources & Verification
Not legal advice. Verify against the official source and consult a licensed attorney in California.