(1) A person holding a lien or encumbrance as shown upon a certificate of title upon a vehicle or vessel may release the lien or encumbrance or assign the person's interest to the owner without affecting the registration of the vehicle or vessel. (2) The division shall issue a new certificate of title without a lien previously recorded upon receiving: (a) a certificate of title: (i) upon which a lienholder has released or assigned the lienholder's interest to the owner; or (ii) not so endorsed but accompanied by a legal release from a lienholder of the lienholder's interest in or to a vehicle, vessel, or outboard motor; (b) an application properly completed; and (c) the proper fee.
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