Al-hawalah ala al-maqrwd

Definition of "Al-hawalah ala al-maqrwd"

Endorsement of one’s debt to a third party who is a debtor of the person endorsing the debt. The term has been used in the model of Islamic banking by some writers. An obvious example is the case where a cheque is written in favour of a third party and drawn upon the bank that has a credit balance of the cheque-writer in the books of the bank.