(a) The department may refuse to accept a certificate of title that is defaced or damaged, or that contains erasures, strikeovers, or obliteration of any type.
(b) If the department refuses to accept a title described in (a) of this section, the department may
(1) accept the title with a notarized affidavit of explanation from the person who damaged, defaced, or obliterated the title;
(2) accept the title with a written explanation on company letterhead from a licensed motor vehicle dealer; or
(3) require the owner of record to obtain a duplicate title.