Upon the transfer of ownership of a motor or off-highway vehicle by inheritance or by operation of law, as in proceedings in bankruptcy, insolvency, replevin, attachment, execution, or other judicial sale, or if the vehicle is sold to satisfy storage or repair charges or repossessed to satisfy a secured debt, the director or the authorized agent may issue, upon the surrender of any available certificate of title and presentation of such proof of ownership as the director may reasonably require or a court order, a new certificate of title on behalf of the new owner and dispose of the certificate as in other cases.
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