(a) The Commissioner shall suspend or revoke a certificate of title, upon notice and reasonable opportunity to be heard in accordance with section 3804 of this chapter, if he or she finds:
(1) the certificate of title was fraudulently procured or erroneously issued; or
(2) the vessel, snowmobile, or all-terrain vehicle has been scrapped, dismantled, or destroyed.
(b) Suspension or revocation of a certificate of title does not, in itself, affect the validity of a security interest noted on it.
(c) When the Commissioner suspends or revokes a certificate of title, the owner or person in possession of it shall, immediately upon receiving notice of the suspension or revocation, mail or deliver the certificate to the Commissioner.
(d) The Commissioner may seize and impound any certificate of title that has been suspended or revoked.