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 licensee’s 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.
7090
7090.1
7090.5
7091
7095
7096
7097
7098
7099
7099.1
7099.2
7099.3
7099.4
7099.5
7099.6
7099.7
7099.10
7099.11
7100
7102
7103
7104
7106
7106.5
7107
7108
7108.5
7108.6
7109
7109.5
7110
7110.1
7110.5
7111
7111.1
7112
7112.1
7113
7113.5
7114
7114.1
7114.2
7115
7116
7116.5
7117
7117.5
7117.6
7118
7118.4
7118.5
7118.6
7119
7120
7121
7121.1
7121.5
7121.6
7121.7
7121.8
7121.65
7122
7122.1
7122.2
7122.5
7123
7123.5
7124
7124.6
7090.1
7090.5
7091
7095
7096
7097
7098
7099
7099.1
7099.2
7099.3
7099.4
7099.5
7099.6
7099.7
7099.10
7099.11
7100
7102
7103
7104
7106
7106.5
7107
7108
7108.5
7108.6
7109
7109.5
7110
7110.1
7110.5
7111
7111.1
7112
7112.1
7113
7113.5
7114
7114.1
7114.2
7115
7116
7116.5
7117
7117.5
7117.6
7118
7118.4
7118.5
7118.6
7119
7120
7121
7121.1
7121.5
7121.6
7121.7
7121.8
7121.65
7122
7122.1
7122.2
7122.5
7123
7123.5
7124
7124.6