If an owner’s registration has been suspended under the provisions of this chapter, that registration shall not be transferred nor the motor vehicle in respect of which the registration was issued registered in any other name until the director is satisfied that the transfer of registration is proposed in good faith and not for the purpose or with the effect of defeating the purposes of this chapter. Nothing in this section shall be construed to apply to or affect the registration of any motor vehicle sold by a person who, pursuant to the terms or conditions of any written instrument giving a right of repossession, has exercised that right and has repossessed that motor vehicle from a person whose registration has been suspended under the provisions of this chapter.