(a) The Department of Natural Resources may suspend or revoke a certificate of title, upon notice and reasonable opportunity to be heard, when authorized by any other provision of law or if he finds:
        1. The certificate of title was fraudulently procured
    
or erroneously issued, or
        2. The watercraft 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.
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     (c) When the Department of Natural Resources 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 Department.
     (d) The Department of Natural Resources may seize and impound any certificate of title which has been suspended or revoked.
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