Credit Union Investment Authority Act

The Credit Union Investment Authority Act expands the types of financial instruments that federal credit unions are permitted to purchase by amending the Federal Credit Union Act. Specifically, it allows credit unions to invest in corporate debt issued by entities not exclusively owned by or designed for credit unions, provided that investments in any single issuer do not exceed 10 percent of the credit union's paid-in capital and surplus. Additionally, the bill authorizes federal credit unions to purchase asset-backed securities as defined under the Securities Exchange Act of 1934. To ensure safety and soundness, the National Credit Union Administration Board is required to issue regulations within one year that set minimum standards for the size, aggregate sale price, and investment grade of these asset-backed securities.