Prime Minister Ehud Olmert said he would announce, at the Cabinet meeting Sunday morning, his plans to submit his letter of resignation. He left open the actual time of his resignation until early this afternoon, when he announced that he would hand in the letter of resignation to President Shimon Peres Sunday evening at 7:30 p.m. The Prime Minister said in July that he would resign "when a new [Kadima] party leader is chosen... in order to enable him/her to form a new government." Though the implication was that he would resign before or as the efforts to form a new government begin, no date was specified. When Foreign Minister Tzipi Livni was chosen last week to head the Kadima party and began efforts to form a new government, Olmert went one step further. He informed his fellow Cabinet ministers in Kadima that he will announce in the Cabinet meeting his decision to resign from the position of Prime Minister - but again, did not say when he would hand in the letter. Around 2 p.m., Olmert finally agreed to pin himself down, and stated that at 7:30 p.m., he would arrive at the President's Residence and give the letter to President Shimon Peres. The resignation will take effect 48 hours later. It is not clear if Peres will call off his planned trip to New York to take part in the United Nations convention this week. As part of his duties, he must choose a new Knesset Member - Tzipi Livni, in this case, although it is his prerogative to choose any other MK that he might feel has a better chance of forming a new government - to put together a new coalition government. How Long Can Olmert Remain as Prime Minister? Livni will have 42 days to form a new government, beginning the day she receives the official mandate from President Peres to do so. During that time, Olmert remains as prime minister. If Livni does not succeed in forming a coalition government in her allotted 42 days, and if her party does not agree to new elections, President Peres can then give the task to another MK, who will have 28 days to form a coalition. If that second leader fails as well, Peres can appoint a third person, who will be given only 14 days to form a government. If elections are not agreed upon during those 84 days, new elections must be held 90 days later. Whether Livni succeeds in forming a new government in the coming days or weeks, or if a 2nd or 3rd MK forms one, or if new elections are held and a new government is formed shortly afterwards, Olmert remains the head of the caretaker government until the new government is actually formed. Theoretically, therefore, Olmert might still remain Prime Minister for six months or more. Livni: New Gov't Now - or New Elections Meanwhile, Livni has been meeting with leaders of various parties in an effort to form a new coalition. She has expressed the hope that the present coalition parties will not raise unreasonable demands and will agree to remain in the government. "Either a new government immediately or new elections immediately," she has said. If she decides that a new government is not feasible, she says she will call new elections, which will be held 90 days later or on a date agreed upon by the parties. Livni has met with the leaders of two opposition parties - Zevulun Orlev of the National Religious Party and Chaim Oron of Meretz - as well as with Rafi Eitan of the Pensioners Party. However, more critical in the coalition-making process are the leaders of Labor and Shas, Kadima's two largest coalition partners. Labor leader Defense Minister Ehud Barak, who was never very enthusiastic about Livni's qualifications for Prime Minister, now fears that she may try to use him. The fear is that Livni will form a new government only in order to be able to quickly call new elections afterwards from the position of Prime Minister. Labor's Binyamin Ben-Eliezer, Minister of Infrastructures, said that Livni must obligate herself to "two years of government stability" if she wishes Labor to remain in the coalition. Shas leader Eli Yishai has said that he will not join a Livni-led government unless she promises to restore National Insurance child allowances and not to negotiate the division of Jerusalem. Neither of these demands will be easy for Livni to promise.