The Department of Motor Vehicles shall suspend or revoke a certificate of title:

(1) If it finds

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(a) the certificate of title was fraudulently procured or erroneously issued or

(b) the vehicle has been scrapped, dismantled or destroyed;

(2) When the Department determines that the fee has not been paid and such fee is not paid under reasonable notice and demand; or

(3) When the Department determines that the owner has committed any offense under this chapter or Chapter 21 of Title 16 involving the certificate to be suspended or revoked.