Reimbursement for errant contribution

[SRP]

I am looking for suggestions on the appropriate handling of a somewhat hypothetical situation.

What if an employer processed an electronic funds transfer (e.g. ACH) for contribution purposes and the recordkeeper immediately invested the contribution (per its normal procedures) as instructed by the employer. However, two days later it turns out there was insufficient funds to cover the ACH and the custodian demands reimbursement. In the meantime the recordkeeper sells the exact shares that were purchased by the insufficient funds "Buys" but because the market has dropped the proceeds are less than the value of the initial purchases.

Let's say the Service Agreement(s) are silent about such an event. Is there an implied right of the recordkeeper or the custodian to liquidate additional plan assets in order to reimburse the shortfall on behalf of the custodian? What options are generally available to the recordkeeper or custodian to collect the shortfall?

Thanks in advance.

[Peter Gulia]

I have handled this situation a few times, setting up different solutions for different recordkeeper/trustee configurations and business needs. I'm willing to give some free pointers, but it wouldn't be a good discussion for the bulletin board.