(a) Return of new snowmobile or ATV.--The department may cancel the certificate of title issued for a new snowmobile or ATV if it is shown by satisfactory evidence that the snowmobile or ATV has been returned to the dealer from whom obtained.

(b) Snowmobile or ATV sold to nonresidents.--The department may cancel a certificate of title for a snowmobile or ATV sold to a resident of another state or foreign country if the snowmobile or ATV is to be registered in the other jurisdiction.

(c) Surrender of Pennsylvania certificate in other jurisdiction.--The department, upon receipt of notification from another state or foreign country that a certificate of title issued by the department has been surrendered by the owner in conformity with the laws of the other state or foreign country, may cancel the certificate of title.

(d) Surrender of foreign certificate to department.--If an owner surrenders a certificate of title from another state or foreign country to the department, the department may notify the state or foreign country so that the certificate of title may be canceled or otherwise disposed of in accordance with the law of the other jurisdiction.

(e) Conviction for misstatement of facts.--The department, upon receipt of certification from the clerk of a court showing conviction for a misstatement of facts on an application for an original or duplicate certificate of title or a transfer of a certificate of title, shall suspend the certificate of title and require that it be returned to the department within ten days of notice by the department, whereupon the department may cancel it.

(f) Nonpayment of fee.--The department may suspend or cancel a certificate of title when a check received in payment of the fee is not paid on demand or when the fee for the certificate is unpaid and owing.

(g) Security interest unaffected by suspension or cancellation.--Suspension or cancellation of a certificate of title does not, in itself, affect the validity of a security interest noted on the certificate.

(h) Surrender of certificate.--The department may request the return of a certificate of title which has been suspended or canceled. The owner or person in possession of the certificate of title shall, within ten days of the date of request by the department, mail or deliver the certificate to the department.

(Dec. 12, 1986, P.L.1562, No.170, eff. 60 days; June 25, 2001, P.L.701, No.68, eff. 120 days)