In Re Fader Motor Company

DUFFY, Chancellor:

This is the decision on the merits of a claim filed by the Estate of A. Franklin Fader (“Estate”) against the Receiver of Fader Motor Co., a Delaware corporation (“Receiver”). The Estate, as subrogee of Universal C.I.T. Credit Corporation (“C.I. T.”), seeks, inter alia, an adjudication that it had a lien on certain funds owed to Fader Motor Co. (“Fader Co.”) by the Ford Motor Company (“Ford”), and that the lien arose prior-to appointment of the Receiver. The Receiver has objected to the claim.

The Estate claims a lien based upon an agreement between C.I.T. and Fader Co.…