Malaysia legislation
Section 60
Section 60
Application of payment where debt to be discharged is indicated
Where a debtor, owing several distinct debts to one person, makes a payment to him, either with express intimation, or under circumstances implying that the payment is to be applied to the discharge of some particular debt, the payment, if accepted, must be applied accordingly.
(a)
A owes B, among other debts, RM1,000 upon a promissory note, which falls due on the 1st of June. He owes B no other debt of that amount. On the 1st of June A pays to B RM1,000. The payment is to be applied to the discharge of the promissory note.
(b)
A owes to B, among other debts, the sum of RM567. B writes to A and demands the payment of this sum. A sends to B RM567. This payment is to be applied to the discharge of the debt of which B had demanded payment.
Application of payment where debt to be discharged is not indicated