1. If a court of competent jurisdiction determines that a parent has legal rights to a child making the child ineligible for an agency adoption, the child-placing agency shall:
(a) Immediately declare the relinquishment executed by the placing parent null and void and without legal effect;
(b) Immediately withdraw the petition for termination of parental rights; and
(c) Provide the court with a declaration that is notarized and acknowledged by the child-placing agency that the relinquishment has been voided.
2. If a relinquishment is voided pursuant to subsection 1, all legal rights, privileges, responsibilities and obligations to a child are restored to the placing parent by operation of law.