Credit Arrangements

9 Months Ended

Sep. 30, 2018

Note 5 – Credit Arrangements

Instrument	Issue Date	Maturity Date		Revolving Credit Limit		December 31, 2017	Borrowings	Repayments		September 30, 2018
Lines of Credit:
UTG	11/20/2013	11/20/2018	$	8,000,000	$	0	0	0	$	0
UG	6/2/2015	5/10/2019		10,000,000		0	0	0		0

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. The Company is currently in the process of renewing this line of credit.

During May of 2018, 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.