(1) The department shall suspend or revoke a certificate of title if it finds any of the following: (a) That the certificate of title was fraudulently procured, erroneously issued or prohibited by law. (b) That the manufactured home has been scrapped, dismantled or destroyed. (c) That a transfer of title is set aside by a court of record by order or judgment. (2) Suspension or revocation of a certificate of title does not, in itself, affect the validity of a security interest noted on it. (3) 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. (4) The department may seize and impound any certificate of title that has been suspended or revoked.
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