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HIWALAH - Coggle Diagram
HIWALAH
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Definition
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Comprises 2 kinds:
- *Hiwalah al-haqq (transfer of right)
- replacement of a creditor with another creditor.
- Hiwalah al-dayn
- transfer of debt from the transferor (muhil) to the payer (*muhal 'alayh).
- Hanafi scholars define it as the transfer of the right to demand (the debt) from the debtor to another liable person.
Types of Hiwalah
- Hiwalah muqayyadah (restricted hiwalah)
- It is a transaction where the payer is restricted to settling the amount of the transferred debt from the amount of financial or tangible asset that belongs to the transferor and is in the possession of the payer.
- Hiwalah mutlaqah (unrestricted hiwalah)
- It is a kind of transfer debt in which the transferor is not the creditor to the payer, and the payer undertakes to pay the amount of the debt owed by the transferor from his own funds, and have to recourse afterwards to the transferor for settlement, provided that the transfer for payment was made on the order of the transferor.