Section 40

an individual who is a dealer becomes bankrupt, the Commissioner shall transfer the deposit paid by or in respect of such individual under section 38 to his trustee in bankruptcy;

a corporation or firm that is a dealer is ordered to be wound up or dissolved by or under the supervision of a court, the Commissioner shall transfer the deposit paid by or in respect of such corporation or firm under section 38 to the liquidator of the corporation or firm; or

the Commissioner has reason to believe that any person has sustained pecuniary loss because of a default committed in the course of or in connection with the commodity futures trading business of a dealer, by the dealer or any director, partner or employee, as the case may be, accredited to the dealer, the Commissioner may forfeit all or any part of the deposit paid by or in respect of the dealer under section 38.

Where a deposit is transferred to a trustee in bankruptcy under paragraph (a) of subsection (1), or liquidator under paragraph (b) of subsection (1), such deposit shall be applied by the trustee or liquidator, as the case may be, in accordance with regulations made under this Act.

In the event of a deposit or any part of a deposit being forfeited under paragraph (c) of subsection (1), the deposit or part thereof so forfeited shall be applied by the Commissioner in accordance with regulations made under this Act.

Where any deposit is transferred or forfeited under subsection (1), the Commissioner shall notify in writing the person who paid the deposit of such transfer or forfeiture.

A deposit lodged under section 38 shall be applied by the Commissioner in accordance with regulations made under this Act.

No deposit paid to the Commissioner under section 38 shall be available to compensate any person who has sustained pecuniary loss in consequence of trading on an exchange that is not a Specified Commodity Exchange.