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InU.S. v. BCCI Holdings,the U.S. District Court for the District of Columbia dismissed a beneficiary's claim to forfeited assets. The beneficiary argued that prior UCC - 5-117 gave it preference over other creditors. That section states that L/C claimants "are entitled to payment in preference over depositors or other general creditors of the issuer or bank." The court ruled, however, that the section did not "grant a letter of credit claimant any status other than that of a general creditor." As a general creditor, the beneficiary lacked standing to assert its claim to the forfeited assets under the applicable forfeiture statute, 18 U.S.C. - 1963.

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