"holæ" is sometimes seen on old maps to indicate Hólar in Hjaltadalur, the seat of the bishop in the north. The term "holar" really means "small hill", and is the plural of "hóll".
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Replying to:
I have, in a document of 1441, found the word "holæ". I may be read "hole" or "hola" (Icelandic words). It is a topograpic term, - something found of natural origin and it may have the meaning of a small hill, or anything else opposite to a hole in the ground! Any suggestions appreciated.