Is a successive assignment of debt (hawala) valid when the second assignee assigns it further?

General Chapter

Al-Mughni

Book of Assignment (Transfer of Debt)

Book 17 · Issue 1 · Bab 1

Open in Qurani

Primary text

A successive assignment (hawala) is valid. If A assigns a debt of one thousand upon B to C, and C subsequently assigns that same debt to D, the second assignment is sound because the right of the second assignee (C) is established and firmly settled in his possession, making it valid to assign it further, similar to the original assignment. This principle applies even if the assignment is for an amount that is confirmed to be owed to the assignee by the debtor of the original assignment.