(a) Unless an application for a certificate of title is rejected pursuant to subsection (c) or (d) of this section, the Department of Motor Vehicles shall create a certificate of title for the vessel in accordance with subsection (b) of this section after delivery of an application to the department that complies with § 15-207.

(b) If the department creates electronic certificates of title, the department shall create an electronic certificate of title unless in the application the secured party of record or, if none, the owner of record, requests that the department create a written certificate of title.

(c) Except as otherwise provided in subsection (d) of this section, the department may reject an application for a certificate of title only if:

(1) The application does not comply with § 15-207;

(2) The application does not contain documentation sufficient for the department to determine whether the applicant is entitled to a certificate of title;

(3) There is a reasonable basis for concluding that the application is fraudulent or issuance of a certificate of title would facilitate a fraudulent or illegal act; or

(4) The application does not comply with state law.

(d) The department shall reject an application for a certificate of title for a vessel that appears from the application to be a documented vessel or a foreign-documented vessel.

(e) The department may cancel a certificate of title created by the department only if the department:

(1) Could have rejected the application for the certificate of title under subsection (c) of this section;

(2) Is required to cancel the certificate of title pursuant to this section or § 15-211, 15-218 or 15-219; or

(3) Receives satisfactory evidence that the vessel is a documented vessel or a foreign-documented vessel.