CREDIT ARRANGEMENTS

3 Months Ended

Mar. 31, 2016

Note 5 – Credit Arrangements

At March 31, 2016 and December 31, 2015, the Company had the following outstanding debt:

Instrument	Issue Date	Maturity Date		Revolving Credit Limit		December 31, 2015	Borrowings	Repayments		March 31, 2016
Lines of Credit:
UTG	2013-11-20	2016-11-20	$	8,000,000	$	0	0	0	$	0
UG	2015-06-02	2016-05-19		10,000,000		0	0	0		0

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").

During June of 2015, 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.