(1) When a certificate of title is issued by this state, the Department of Transportation shall deliver the certificate as follows unless otherwise provided by law:

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(a) To the security interest holder with the highest priority.

(b) If there are no security interest holders, to the lessor.

(c) If there are no security interest holders or lessors, to the owner of the vehicle.

(2) When a salvage title certificate is issued by this state, the department shall deliver the certificate to the owner of the vehicle.

(3) The department may determine by rule whether, when, how and to whom titles issued in a form other than a certificate shall be delivered. [1983 c.338 § 181; 1985 c.16 § 63; 1991 c.873 § 31; 1993 c.233 § 23]