Credit Union Investment Authority Act

This bill amends the Federal Credit Union Act to give Federal credit unions broader authority to invest their funds. Specifically, it allows them to buy corporate debt instruments and asset-backed securities, subject to specific limits and regulatory rules.

* **Federal credit unions:** Gain expanded authority to invest in new types of financial products. * **National Credit Union Administration (NCUA) Board:** Required to create new rules to regulate asset-backed security investments. * **Issuers of corporate debt and asset-backed securities:** May see increased investment from Federal credit unions.

* **Corporate Debt Investments:** Federal credit unions would be authorized to invest in marketable debt instruments—such as bonds and notes—issued by companies, associations, or agencies. This applies even if the issuer is not owned by or focused on serving credit unions. * **Asset-Backed Securities:** Federal credit unions would be permitted to invest in asset-backed securities (as defined under the Securities Exchange Act of 1934). * **Agency Rules and Deadlines:** The NCUA Board is required to issue regulations for asset-backed security investments within **1 year** of the bill's enactment. These regulations must set: 1. The minimum issue size of the security when it is first distributed. 2. The minimum total sale price of the security. 3. Investment-grade quality standards for the security.

The bill summary does not mention any federal spending, appropriations, taxes, or user fees. However, it regulates how Federal credit unions manage their own capital: * A Federal credit union is capped at investing a maximum of **10 percent** of its paid-in unimpaired capital and surplus in the obligations of any single issuer.

* **Single-Issuer Cap:** Credit unions cannot put more than 10 percent of their capital and surplus into debt issued by one single company or organization. * **Regulatory Restrictions:** Credit unions cannot freely buy any asset-backed security; investments are limited to securities that meet the investment-grade standards, minimum issue sizes, and minimum sale prices established by the NCUA Board.

This bill allows federal credit unions to invest in corporate bonds and asset-backed securities, cap how much they can invest with any single issuer at 10 percent of their capital, and directs federal regulators to set safety standards for these investments within one year.