"Hawala" is based on a short term, discountable, negotiable, promissory note (or bill of exchange) called "Hundi", transferred from one debtor to another. After the debt is transferred to the second debtor, the first debtor is free from his/her obligation. Recipient of the funds often identify themselves with passwords given to them by the sender. Hawaladars are often small traders who work at "hawala" as a sideline or moonlighting operation. Hawaladars networks are usually family or clan-based, and enforcement of the contracts is based on these networks rather than the power of the state.