(1) The department shall suspend or revoke a certificate of title, certificate of number, or registration for a boat if it finds any of the following: (a) The certificate of title, certificate of number, or registration was fraudulently procured, erroneously issued, or prohibited by law. (b) The boat has been scrapped, dismantled, or destroyed. (c) A transfer of title, certificate of number, or registration is set aside by a court 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, certificate of number, or registration, the owner or person in possession of the certificate or registration shall, within 5 days after receiving notice of the suspension or revocation, mail or deliver the certificate or registration to the department. (4) The department may seize and impound a certificate of title, certificate of number, or registration that is suspended or revoked.
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