Credit Arrangements

12 Months Ended

Dec. 31, 2018

Note 7 – Credit Arrangements

At December 31, 2018 and 2017, the Company had the following lines of credit available:

Instrument	Issue Date	Maturity Date	Revolving Credit Limit			December 31, 2017			Borrowings		Repayments		December 31, 2018

Lines of Credit:
UTG	11/20/2013	11/20/2019		$	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 5.125% 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 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.