1. The department shall suspend or revoke a certificate of title, upon notice and reasonable opportunity to be heard in accordance with chapter 28 -32, when authorized by any other provision of law or if it finds: a. The certificate of title was fraudulently procured or erroneously issued; b. The vehicle has been scrapped, dismantled, or destroyed; or c. A person has acquired a vehicle but has failed to transfer the ownership as required by this chapter. 2. For purposes of this section, the following apply: a. Suspension or revocation of a certificate of title does not, in itself, affect the validity of a security interest noted on it. b. When the department 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. c. The department may seize and impound any certificate of title which has been suspended or revoked. 3. Except as provided in subsection 2 of section 39 -05-35, the department may not suspend or revoke a certificate of title to a manufactured home by reason of the fact that at any time the manufactured home becomes affixed in any manner to real property.
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