Credit Arrangements

12 Months Ended

Dec. 31, 2023

Note 7 – Credit Arrangements

At December 31, 2023 and 2022, the Company had the following lines of credit available:

Instrument	Issue Date	Maturity Date	Revolving Credit Limit		December 31, 2022		Borrowings		Repayments		December 31, 2023
Lines of Credit:
UTG	11/20/2013	11/20/2024	$	8,000,000		0		0		0	$	0
UG - CMA	10/21/2021	10/4/2024		25,000,000		19,000,000		21,500,000		21,500,000		19,000,000

UTG has a variable rate revolving line of credit. As collateral, UTG has pledged 100% of the common voting stock of its wholly owned subsidiary, Universal Guaranty Life Insurance Company ("UG").

During October of 2023, 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 has pledged bonds with a collateral lendable value of $20,258,602. During the fourth quarter of 2023, the Company borrowed $19 million and planned to utilize the funds for investing activities. The interest rate on the borrowed funds is variable and currently is 5.47%. During the first quarter of 2024, the Company repaid the entire outstanding principal balance.