(1) The director may revoke, suspend, cancel, or refuse to issue or renew a registration certificate under sections 60-3,198 to 60-3,203:

(a) If the ability of the applicant or registration certificate holder to operate has been terminated or denied by a federal agency, upon receipt of notice of the termination or denial under the federal Performance and Registration Information Systems Management Program;

(b) If the applicant has failed to disclose material information required on the application or if the applicant has made a materially false statement on the application; or

(c) If the applicant has applied for the purpose of avoiding a suspension, revocation, cancellation, or refusal to issue or renew a registration certificate for the real party in interest or if the applicant's business is operated, managed, or otherwise controlled by or affiliated with a person or entity who or which is ineligible for registration, including the applicant entity, a relative, a family member, a corporate officer, or a shareholder.

(2) Any person who receives notice from the director of action taken pursuant to subsection (1) of this section shall, within three business days, return such registration certificate and license plates to the department. If any person fails to return the registration certificate and license plates to the department, the department shall notify the Nebraska State Patrol that any such person is in violation of this section.