Malaysia legislation
Section 72
Section 72
Where a bill drawn in one country is negotiated, accepted or payable in another, the rights, duties and liabilities of the parties thereto are determined as follows:
46 Laws of Malaysia ACT 204
(a)
the validity of a bill as regards requisites in form is determined by the law of the place of issue, and the validity as regards requisites in form of the supervening contracts, such as acceptance, or indorsement, or acceptance supra protest, is determined by the law of the place where such contract was made:
Provided that—
(i)
where a bill is issued out of Malaysia it is not invalid by reason only that it is not stamped in accordance with the law of the place of issue;
(ii)
where a bill, issued out of Malaysia, conforms, as regards requisites in form, to the law of Malaysia, it may, for the purpose of enforcing payment thereof, be treated as valid as between all persons who negotiate, hold or become parties to it in Malaysia;
(b)
subject to the provisions of this Act, the interpretation of the drawing, indorsement, acceptance, or acceptance supra protest of a bill, is determined by the law of the place where such contract is made:
Provided that where an inland bill is indorsed in a foreign country, the indorsement shall, as regards the payer, be interpreted according to the law of Malaysia;
(c)
the duties of the holder with respect to presentment for acceptance or payment and the necessity for or sufficiency of a protest or notice of dishonour, or otherwise, are determined by the law of the place where the act is done or the bill is dishonoured;
(d)
where the bill is drawn out of but payable in Malaysia and the sum payable is not expressed in the currency of Malaysia, the amount shall, in the absence of some express stipulation, be calculated according to the rate of exchange for sight drafts at the place of payment on the day the bill is payable;
(e)
where a bill is drawn in one country and is payable in another, the due date thereof is determined according to the law of the place where it is payable.
Bills of Exchange 47