Conditions & Modern Forms

**Conditions for Validity:** **1. Consent of Transferor:** Because he has choice in the means of debt repayment; no means is imposed on him by force. **2. Equal Debts:** The two debts (transferred and owed) must be equal in amount, type, and quality. **3. Established Debt:** The transferred debt must be an established obligation on the one transferred to. **4. Debt Must Be Due:** The debt must be due at the time of transfer. --- **Modern Forms of Hawalah:** **1. Bank Transfer (Hawalah Masrafiyyah):** A method for paying amounts by having an equivalent paid elsewhere. Its form: A person pays a sum to a bank, requesting it to pay the equivalent to another person in another country, in exchange for a fee the bank charges. **2. Suftajah (Bill of Exchange):** Related to hawalah. It is a letter or note written by the borrower to the lender or his agent, to his agent in another country to pay the lender. Or a person lends another in one country, to be repaid by the borrower or his agent to the lender or his agent in another country. - The paper written for this is called suftajah (a Persianized word) - Some prohibited it; the correct view is its permissibility as it benefits both parties without harm or Shariah violation