A Usance or a Deferred Transfer Letter of Credit is also called as Term Transfer Letter of Credit.

The Transfer Letter of credit that is payable at a predetermined or future point following the conditions in the LC being fulfilled and the confirming documents being presented.

The Transfer Letter of Credit will set out the time to maturity and the actual payment date.

The Usance document sets are only Settled at the Maturity.  If several maturities have been posted to a document set, the system automatically proposes the next maturity for settlement.

The 'Final Settlement' for an Transfer L/C Document Set will happen only on the Maturity time.

The Transfer L/C contract is closed when the amount settled actually matches the open amount. When a document set comprises several maturities, the contract is only closed when the last maturity is settled.

The 'Free of Payment' checkbox determines whether the documents are to be settled value-free, or not. Checking the checkbox means that the documents are settled immediately and without payment.

Loans to the issuing bank can be created by checking the 'Create Financing' checkbox on the 'Funds Settlement' panel. Financing details can be entered on the relevant panel.

To Settle a maturity posted to a document set in a Transfer L/C on the due date, BTTSET transaction is used.  

Select it from the menu item [Export Products ->Transfer L/C -> Transfer Documents -> Settle Usance Docs at Mat.]. 

(Users can directly start this transaction by clicking the  (Launch transaction ) available in the Panel headline without having to select the relevant menu ) 

When you have made your changes, click on the ( )  Save function to save all the the data entered in the transaction to the database.