Credit Union Investment Authority Act
Sponsored By: Representative Bynum, Janelle S. [D-OR-5]
Introduced
Summary
Would expand federal credit unions' investment authority to include marketable obligations and asset-backed securities. It would set a 10 percent per-issuer limit and require the National Credit Union Administration Board to issue rules within one year to govern purchases of asset-backed securities.
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- Federal credit unions: Would be allowed to buy marketable obligations, bonds, notes, or other debt of agencies, associations, or companies whose membership or ownership is not restricted to federal credit unions and whose activities are not designed primarily to serve credit union operations. They could not invest more than 10 percent of paid-in unimpaired capital and surplus in obligations of any one issuer.
- National Credit Union Administration Board: Would have one year to write implementing regulations for asset-backed securities purchases. Those rules must set minimum initial issue size, minimum aggregate sale price, and a minimum investment grade for assets federal credit unions may buy.
- Issuers and markets: Would expand the pool of eligible issuers and add asset-backed securities as eligible investments by cross-referencing the Securities Exchange Act definition.
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Bill Overview
Analyzed Economic Effects
1 provisions identified: 0 benefits, 0 costs, 1 mixed.
New investment options and limits for credit unions
If enacted, Federal credit unions would be allowed to buy marketable obligations from issuers that are not limited to credit unions. They would also be allowed to buy asset-backed securities as defined in section 3(a) of the Securities Exchange Act of 1934. The NCUA Board would have to write rules within 1 year setting minimum issue size, minimum aggregate sale price, and a minimum investment grade for those securities. At the same time, a credit union would not be allowed to invest more than 10 percent of its paid-in unimpaired capital and surplus in the obligations of any one issuer.
Sponsors & CoSponsors
Sponsor
Bynum, Janelle S. [D-OR-5]
OR • D
Cosponsors
Rep. Kim, Young [R-CA-40]
CA • R
Sponsored 8/13/2026
Roll Call Votes
No roll call votes available for this bill.
View on Congress.gov