If a motor vehicle with a military specialty plate is destroyed by collision or fire, disposed of for salvage, or if rejected or condemned for use on the highways as the result of action by any inspection authority of this state, the registered owner of the motor vehicle shall remove the military specialty plates from the vehicle and shall receive a credit for the unexpired time on the registration when the plates are attached to another vehicle. The county treasurer shall process a new registration indicating the motor vehicle to which the military specialty plates are to be transferred and send it to the department. The secretary shall make the necessary changes in the registration system and the credit shall be applied. The department shall notify the transferor of any corrections which need to be made. If the military specialty plates were destroyed, the owner shall apply for a replacement set of plates pursuant to §