(a) If a certificate of title issued under this chapter or previously issued under Chapter 8 is lost, stolen, mutilated, or destroyed or becomes illegible, the first lienholder or, if none, the owner or legal representative of the owner named in the certificate, as shown by the records of the department, shall promptly make application for and may obtain a replacement upon furnishing information satisfactory to the department and payment of the applicable transaction fee and commissions as required by this chapter. The replacement certificate of title shall contain the legend, “This is a replacement certificate and may be subject to the rights of a person under the original certificate.” It shall be mailed to the first lienholder named in it, or, if none, to the owner.
(b) A person recovering an original certificate of title for which a replacement has been issued shall promptly surrender the original certificate to the department.