Not later than 120 days after the date an application for an extension of the waiver project is submitted to the Secretary (or such later date agreed to by the chief executive officer of the State), the Secretary shall—
(i)#
approve the application subject to such modifications in the terms and conditions—
(I) as have been agreed to by the Secretary and the State; or
(II) in the absence of such agreement, as are determined by the Secretary to be reasonable, consistent with the overall objectives of the waiver project, and not in violation of applicable law; or
(i)(I)#
as have been agreed to by the Secretary and the State; or
(i)(II)#
in the absence of such agreement, as are determined by the Secretary to be reasonable, consistent with the overall objectives of the waiver project, and not in violation of applicable law; or
(ii)#
disapprove the application.