Common use of Effectiveness; Operativeness Clause in Contracts

Effectiveness; Operativeness. Sections 1 and 2 of this Supplemental Indenture shall become effective and binding upon the Authority, the Trustee, the Guarantor and the holders of the Notes immediately upon the execution and delivery of this Supplemental Indenture and, except for Section 1.2 hereof, shall become operative on and simultaneously with the acceptance for purchase by the Authority of at least a majority of the Outstanding Amount in the Offer; provided, however, that this Supplemental Indenture will cease to be operative if the Authority fails to purchase outstanding Notes comprising at least a majority of the Outstanding Amount. Section 1.2 of this Supplemental Indenture shall become operative on and simultaneously with the acceptance for purchase by the Authority of at least two-thirds of the Outstanding Amount in the Offer; provided, however, that Section 1.2 of this Supplemental Indenture will cease to be operative if the Authority fails to purchase outstanding Notes comprising at least two-thirds of the Outstanding Amount.