A. The department may only issue a vehicle certificate of title without registration for a vehicle that is physically present in this state for any of the following reasons:

1. 1. The applicant for a certificate of title is a nonresident whose vehicle is not subject to vehicle registration in this state.
2. 2. The applicant certifies that the vehicle was acquired for purposes other than highway use.
3. 3. The vehicle was acquired by operation of law.
4. 4. The vehicle is an off-road recreational motor vehicle required to be issued a certificate of title pursuant to section 28-2061.

B. The department shall issue a certificate of title without registration for either of the following reasons:

1. 1. The owner will register the vehicle under article 7 or 8 of this chapter.
2. 2. The vehicle is a trailer or semitrailer that will be used in interstate commerce and that is registered in another state.