(1) The Department of Vehicle Regulation shall suspend or revoke a certificate of title, after giving notice and providing a reasonable opportunity for the holder to be heard, when authorized by any other provision of law, or, if it finds: (a) The certificate of title was fraudulently procured or erroneously issued; or (b) The vehicle has been scrapped, dismantled, or destroyed. Suspension or revocation of a certificate of title does not, in itself, affect the validity of a security interest noted on it. (2) When the Department of Vehicle Regulation suspends or revokes a certificate of title, the owner or person in possession of it shall, immediately upon receiving notice of the suspension or revocation, mail or deliver the certificate to the Department of Vehicle Regulation. (3) The department shall promptly notify the Department of Kentucky State Police of the suspension or revocation of any certificate of title. (4) Any peace officer shall seize and impound any certificate of title which has been suspended or revoked except when such document is in the custody of the Department of Vehicle Regulation or the Department of Kentucky State Police.
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