CREDIT ARRANGEMENTS

3 Months Ended

Mar. 31, 2015

NOTES PAYABLE [Abstract]

CREDIT ARRANGEMENTS

Note 5 – Credit Arrangements

At March 31, 2015 and December 31, 2014, the Company had the following outstanding debt:

			Outstanding Principal Balance
Instrument	Issue Date	Maturity Date		March 31, 2015	December 31, 2014
Promissory Note:
UTG Avalon	12/29/2014	4/1/2018		4,400,000	4,400,000

Instrument	Issue Date	Maturity Date		Revolving Credit Limit		December 31, 2014	Borrowings	Repayments		March 31, 2015
Lines of Credit:
UTG	2013-11-20	2015-11-20	$	8,000,000	$	0	0	0	$	0

The UTG Avalon promissory note issued on December 29, 2014 carries interest at a rate of 3.5 % with interest payable quarterly beginning in July of 2015.  The interest is a variable rate that is equal to the lowest of the U.S. Prime Rates as published in the money section of the Wall Street Journal.  The interest rate is subject to change monthly and any change in interest rate is effective the first day of the month following the rate change. Principal is due upon maturity of the note.  During the second quarter of 2015, UTG Avalon repaid $2,000,000 of the outstanding principal balance on the promissory note.  The principal payment was paid by UTG and as a result of the payment, an intercompany promissory note receivable/payable was established.

The UTG line of credit carries interest at a fixed rate of  3.75% 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 consolidated scheduled principal reductions on the notes payable for the next five years are as follows:

Year		Amount
2015	$	0
2016		0
2017		0
2018		4,400,000
2019		0