The department shall refuse to issue a certificate of title upon any of the following grounds:
(1) The application contains any false or fraudulent statement, or the applicant has failed to furnish required information or reasonable additional information requested by the department, or the applicant is not entitled to the issuance of a certificate of title under chapters 1-6 of this title;
(2) The department has reasonable ground to believe that the vehicle is a stolen or embezzled vehicle or that the issuance of a certificate of title would constitute a fraud against the rightful owner or other person having valid lien upon the vehicle; or
(3) The required fee has not been paid.