The Department of Transportation shall comply with the following procedures upon receiving a certificate of title or other notice in accordance with the provisions of ORS 819.010, 819.012 or 819.014:
(1) If the department is satisfied that the vehicle is totaled, wrecked, dismantled, disassembled or substantially altered, the department shall cancel and retire the registration and title of the vehicle. Except for issuance of a salvage title, the department shall not register or title the vehicle again unless:
(a) The department is satisfied that the original title certificate, if any, was surrendered in error or that notice was submitted in error and the record canceled in error;
(b) The vehicle is registered or titled as an assembled vehicle, a reconstructed vehicle or a replica; or
(c) The vehicle is recovered after a theft if the theft is the reason that the vehicle was considered a totaled vehicle.
(2) If the department is satisfied that the vehicle is totaled, wrecked, dismantled or disassembled, the department may issue a proof of compliance form if no salvage title is issued for the vehicle. [1983 c.338 §196; 1985 c.176 §2; 1985 c.401 §3; 1987 c.119 §6; 1991 c.820 §8; 1991 c.873 §38; 1993 c.233 §62]