Arabic (حوالة الحق) for assignment of right; a type of hiwalah (also spelled hiwala) which involves a substitution of one creditor in place of another with respect to the relationship with the debtor. If the established debt for which one debtor replaces another is a fungible item (mal mithli) recognized as a liability, then the assignment of debt is a valid assignment of rights (huquq- pl. of haqq) whereby the principal creditor is the assignor, and the ultimate creditor is the assignee. The assignor is a creditor to the assignee, where the debt gets assigned to a third party (al-muhal lahu or the receiver) who becomes the new creditor.
In this type of hiwalah, the creditor is the initiator of assignment. The following depiction demonstrates the relationship between the three parties involved in hiwalat-ul haq
