Upon cancellation of any certificate of title, the secretary shall notify the county treasurer of the county where the duplicate certificate of title of the vehicle, trailer, or semitrailer is involved was kept. The treasurer shall thereupon enter the cancellation upon the treasurer's records. The secretary shall also notify the person to whom the certificate of title was issued as well as any lien holder appearing thereon of the cancellation and shall demand the surrender of the certificate of title. However, the cancellation may not affect the validity of any lien noted thereon. The holder of the certificate shall return same to the secretary forthwith.
SDCL 32-3-49