Note 7 – Credit Arrangements

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

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

Instrument	Issue Date	Maturity Date	Revolving Credit Limit			December 31, 2016			Borrowings		Repayments		December 31, 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").

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.

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 required 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 had an interest rate of 0%. The notes were fully repaid during 2017.