Effectiveness; Termination

Article VII. Effectiveness; Termination

Section 7.01 Conditions Precedent to Effectiveness of the Grant Agreement

(a) The Grant Agreement shall not become effective until evidence satisfactory to the Commonwealth has been furnished to the Commonwealth that the conditions specified in paragraphs (i) and (ii) of this Section have been satisfied:

(i) the execution and delivery of the Grant Agreement on behalf of the Republic of Indonesia has been duly authorised by all necessary governmental and corporate action; and

(ii) each other condition specified in the Grant Agreement as a condition of its

effectiveness has occurred ("Additional Condition of Effectiveness").

Section 7.02 Legal Opinions or Certificates

(a) As part of the evidence to be furnished pursuant to Section 7.01 there shall be furnished to the Commonwealth an opinion or opinions satisfactory to the Commonwealth of counsel acceptable to the Commonwealth or, if the Commonwealth so requests, a certificate satisfactory to the Commonwealth of the Legal Bureau of the Ministry of Finance of the Republic of Indonesia, showing the following matters:

(i) on behalf of the Republic of Indonesia, that the Grant Agreement to which it is a party has been duly authorised by and executed and delivered on behalf of the Republic of Indonesia and is legally binding upon the Republic of Indonesia in accordance with its terms; and

(ii) each other matter specified in the Grant Agreement or reasonably requested by the Commonwealth in connection the Grant Agreement for the purpose of this Section ("Additional Legal Matter").

Section 7.03 Effective Date

(a) Except as the Republic of Indonesia and the Commonwealth shall otherwise agree, the Grant Agreement shall enter into effect on the date upon which the Commonwealth dispatches to the Republic of Indonesia notice of its acceptance of the evidence required pursuant to Section 7.01 (“Effective Date”).

(b) If, before the Effective Date, any event has occurred which would have entitled the Commonwealth to suspend the right of the Republic of Indonesia to apply for Withdrawals from the Grant Account if the Grant Agreement had been effective, the Commonwealth may postpone the dispatch of the notice referred to in paragraph (a) of this Section until such event (or events) has (or have) ceased to exist.

Section 7.04 Termination of the Grant Agreement for Failure to Become Effective

(a) The Grant Agreement and all obligations of the Parties under the Grant Agreement shall terminate if the Grant Agreement has not entered into effect by the date ("Effectiveness Deadline") specified in the Grant Agreement for the purpose of this Section unless the Commonwealth, after consideration of the reasons for the delay, establishes a later Effectiveness Deadline for the purpose of this Section. The Commonwealth shall promptly notify the Republic of Indonesia of such later Effectiveness Deadline.

Section 7.05 Termination of the Grant Agreement on Performance of all Obligations

(a) The Grant Agreement and all obligations of the Parties under the Grant Agreement shall immediately terminate upon performance of all obligations set forth in the Grant Agreement.

(b) If the Grant Agreement specifies a date by which certain provisions of the Grant Agreement shall terminate, such provisions and all obligations of the Parties under them shall terminate on the earlier of:

(i) such date; and (ii) the date on which the Grant Agreement terminates in accordance with its terms.