(a) The Bureau of Motor Vehicles shall suspend or revoke a certificate of title, upon notice and reasonable opportunity to be heard in accordance with section 260 of this chapter, when authorized by any other provision of law or if it finds:
1. The certificate of title was fraudulently procured or erroneously issued, or
2. The vehicle has been a salvage or junk vehicle or has been scrapped, dismantled or destroyed.
(b) Suspension or revocation of a certificate of title does not, an itself, affect the validity of a security interest noted on it.
(c) When the Bureau of Motor Vehicles 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 Bureau of Motor Vehicles.
(d) The Bureau of Motor Vehicles may seize and impound any certificate of title which has been suspended or revoked.