HOA policy for a specific issue can be developed by the authority of your Board of Directors. For example review your Declaration and/or Bylaws for similar text:

“... the Board of Directors shall be responsible for the affairs of the Association and shall have all of the powers and duties necessary for the administration of the Association’s affairs … resolutions duly adopted by the Board of Directors of and for the Corporation or by such rules and regulations as may be prescribed by the Board of Directors … ”

However, the Board of Directors also need to read and understand their limits to develop a policy within WV Code §55-16-1. Civil remedy for making, drawing, issuing, uttering or delivery of worthless check, draft or order. And more specifically understanding WV Code §61-3-39a through 39h for example. Obtaining property in return for worthless check; penalty. That’s where rights of the check writer kick in – they cannot be held accountable on the same bad check twice.