where should functions be placed?

This made me think of an interesting complication. exit() and die() don't seem to stop functions from being loaded.

PHP Code:

---

<?php
hello();
exit();
function hello() { echo 'hello'; }
?>

---

This works.

PHP Code:

---

<?php
hello();
exit();
if (1==1) { function hello() { echo 'hello'; } }
?>

---

This doesn't work, as above.


I think this is a mistake in PHP. I don't see why functions should be parsed initially.