(a) (State's election): If this Deed is terminated and Project Co has any Actual Debt outstanding, the State may elect to assume some or all of that Actual Debt (including taking novations of some or all of the hedging agreements under the Finance Documents) that would otherwise have been payable to or by Project Co, and to the extent the State so elects:
(i) Project Co must ensure that such rights and Liabilities are novated to the State; and
(ii) the amount of the Termination Payment which the State would otherwise be obliged to pay will be reduced by:
A. the amount of any Liability for Actual Debt assumed by the State; and
B. the amount of any costs of terminating the Finance Documents which would otherwise have been taken into account in determining the Termination Payment, but which are not incurred by reason of the novation.
(b) (Finance Documents): Project Co must ensure that it is permitted, in accordance with the terms of the Finance Documents, to procure the novation of its debt rights and Liabilities in accordance with this clause 46.7.