This fatwa defines hawalah as the transfer of a debt from one party to another, comprising hawalah muqayyadah and hawalah muthlaqah. It defines hawalah muqayyadah as a hawalah where the muhil (debtor) is in debt to the muhal (creditor) at the same time as being in arrears to a muhal 'alaih (financier). The fatwa also defines hawalah muthlaqah as a hawalah where the muhil is in debt to someone but not in arrears to a muhal 'alaih. A hawalah bil ujrah is defined as a hawalah that incurs an ujrah (fee).
The fatwa states that a hawalah bil ujrah only applies to hawalah muthlaqah. Moreover, with a hawalah muthlaqah, the muhal 'alaih may accept an ujrah (fee) in acknowledgment of its ability and commitment to pay the debt of the muhil. The quantum of the fee must be stipulated clearly in the agreement. Ijab (offer) and qabul (acceptance) must also be expressed by both parties showing their intention to enter into an agreement. Among other conditions, the fatwa also states that once a hawalah transaction has been conducted, the right of the muhal to bill shifts to the muahl 'alaih.