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@ripienaar @b0rk Quoth The Standard:

If file does not contain a <slash>, the shell shall use the search path specified by PATH to find the directory containing file. Unlike normal command search, however, the file searched for by the dot utility need not be executable. If no readable file is found, a non-interactive shell shall abort; an interactive shell shall write a diagnostic message to standard error, but this condition shall not be considered a syntax error.
(SUSv7 but unchanged I think.)