(a) The department is authorized to suspend or revoke the registration of a vehicle or a certificate of title, certificate of registration, or registration plate, or any nonresident or other permit in any of the following events:
(1) When the department is satisfied that the registration or that the certificate, plate, or permit was fraudulently or erroneously issued;
(2) When a registered vehicle has been dismantled or wrecked;
(3) When the department determines that the required fee has not been paid and the same is not paid upon reasonable notice and demand;
(4) When a certificate of registration, registration plate or permit is knowingly displayed upon a vehicle other than the one for which it was issued; and
(5) The commissioner shall be empowered to suspend the permit or right of any nonresident under any reciprocal agreement executed under § 55-4-121 if the nonresident is found to have violated any of the laws of this state regulating motor vehicles.
(b) Nothing in chapters 1-6 of this title shall be construed to affect or change the power of the commissioner to revoke motor vehicle registrations under the financial responsibility law in chapter 12 of this title.