Note 5 – Credit Arrangements

At September 30, 2017 and December 31, 2016, the Company had the following outstanding debt:

			Outstanding Principal Balance
Instrument	Issue Date	Maturity Date	September 30, 2017		December 31, 2016
Promissory Note:
SoftVest, LP	7/22/2016	7/22/2018	$	725,000	$	1,450,000
SoftSearch Investment, L.P.	7/22/2016	7/22/2018		725,000		1,450,000

Instrument	Issue Date	Maturity Date	Revolving Credit Limit		December 31, 2016		Borrowings		Repayments		September 30, 2017
Lines of Credit:
UTG	11/20/2013	11/20/2018	$	8,000,000	$	-		-		-	$	-
UG	6/2/2015	5/10/2018		10,000,000		-		-		-		-

The UTG line of credit carries interest at a fixed rate of 4.00% and is payable monthly. As collateral, UTG has pledged 100% of the common voting stock of its wholly owned subsidiary, Universal Guaranty Life Insurance Company (“UG”). The Company is currently in the process of renewing this line of credit.

During May of 2017, the Federal Home Loan Bank approved UG’s Cash Management Advance Application (“CMA”). The CMA gives the Company the option of selecting a variable rate of interest for up to 90 days or a fixed rate for a maximum of 30 days. The variable rate CMA is prepayable at any time without a fee, while the fixed CMA is not prepayable prior to maturity. The Company is currently in the process of renewing the CMA.

On July 22, 2016, the Company entered in to an agreement to acquire 300,000 shares of its outstanding common stock from a shareholder that owned approximately 8% of the Company’s outstanding common stock. The acquisition was made under the Company’s stock buy-back program. As part of this transaction, two promissory notes totaling $2.9 million were issued. The notes require principal payments of one half of the note value to be paid one year from the date of purchase and the other one half to be paid two years from the date of purchase. The notes bear interest at 0%. During April of 2017, the Company paid $725,000 on the outstanding principal balance of each promissory note.