Section R. 281.2213 - Certificate of title; surrender; destructionRule 13.
(1) The secretary of state shall take possession of a certificate of title that is issued or purportedly issued under this act when the certificate is counterfeit or fictitious, when it has been improperly issued, or when it has been cancelled. The secretary of state may destroy a faulty, fictitious, defective, or cancelled certificate of title upon its receipt.(2) The holder of a certificate of title to a watercraft which has been transferred by operation of law, as upon inheritance, devise, bequest, order in bankruptcy, insolvency, replevin, or execution of sale, which is sold to satisfy storage or repair charges, or which is repossessed upon default in the performance of the terms of a security agreement shall mail or deliver the certificate to the secretary of state upon request.(3) The holder of a certificate of title to a watercraft may, if the holder voluntarily subjected the watercraft to the provisions of the act, return the certificate of title to the secretary of state for cancellation. A voluntary request for cancellation of title shall be accompanied by a certified statement indicating that creditors do not exist. If creditors do exist, the voluntary request for cancellation shall be accompanied by an original discharge or termination statement executed by each creditor.Mich. Admin. Code R. 281.2213