The department shall cancel a title or registration whenever: (1) A transfer of title is set aside by the court by order or judgment; or (2) Fraud on the department or an agent of the department is discovered by the department; or (3) It is subsequently discovered that the issuance or possession of a title or registration is prohibited by law or that the odometer of a vehicle for which a certificate of title has been issued by the department has been subjected to tampering and return of the certificate of title to the department is considered necessary to make a notation of that information on the certificate.
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