In the CPU status file you can set one of the three bits:
S:1/10 "Load memory module on memory error"
S:1/11 "Load memory module always"
S:1/12 "Load memory module and RUN"
It is most normal to set S:1/10. The others are more unusual. Setting S:1/11 or S:1/12 will mean the program loses all values by every power cycle, which you dont want in most normal cases.
I believe they are aimed at the memory size of the controller. We use the 1747-M13 for all sizes of controllers (series C, 5/03 and above), and the M2 for the few 5/01 and 5/02 controllers we still have around.
It's okay if the memory module has more room than the SLC, but the reverse can lead to problems.