38.2  State right of step-in

(a)  (State rights): If:

(i)  subject to clause 38.2(b), a Major Default occurs;

(ii)  a State Cure Notice has been issued by the D&C Contractor or the Services Contractor in accordance with the D&C Contractor Direct Deed or the Services Contractor Direct Deed (as the case may be);

(iii)  a Default Termination Event occurs;

(iv)  an Emergency occurs;

(v)  the State is entitled by Law to act to discharge a statutory power or duty; or

(vi)  any Project Activities are suspended following the occurrence of an Intervening Event,

(each a Step-In Event), the State may elect to do (or have its nominee do) any or all of the following:

(vii)  assume total or partial management and control of the whole or any part of the Project Assets or the Project Activities;

(viii)  access those parts of the Project Area and the Project Assets to which Project Co has access or is entitled to occupy; and

(ix)  take such other steps as are necessary in the reasonable opinion of the State for it to carry out any Project Activities and minimise the effect of the relevant Step-In Event.

(b)  (Restricted exercise of rights): Other than when it is exercising its rights in accordance with clauses 38.2(a)(iii) to 38.2(a)(vi) notwithstanding a Major Default has occurred, the State must not exercise its rights under clause 38.2(a) on the occurrence of a Major Default for so long as Project Co is complying with its obligations under clauses 45.4 and 45.5 in respect of that Major Default.