Catholic in a right state filling out permit (7)

I believe the answer is:

license

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'permit' is the definition.
(I know that license is a more specific form of authorise)

'catholic in a right state filling out' is the wordplay.
'catholic' becomes 'C' (abbreviation as in RC for Roman Catholic).
'in' indicates putting letters inside.
'a right' becomes 'lien' (legal right).
'state filling out' becomes 'se' (I can't justify this - if you can you should believe this answer much more).
'c' going into 'lien' is 'licen'.
'licen'+'se'='LICENSE'

Can you help me to learn more?

(Other definitions for license that I've seen before include "Grant formal permission (to)" , "Allow" , "Authorise officially" , "Silence about permission to sell" , "Authorise (something)" .)

I've seen this clue in The Daily Express.

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