Credit Arrangements

12 Months Ended

Dec. 31, 2019

Note 7 – Credit Arrangements

At December 31, 2019 and 2018, the Company had the following lines of credit available:

Instrument	Issue Date	Maturity Date	Revolving Credit Limit		December 31, 2018		Borrowings	Repayments	December 31, 2019

Lines of Credit:
UTG	11/20/2013	11/20/2020	$	8,000,000	$	-	-	-	$	-
UG	6/2/2015	5/8/2020		10,000,000		-	-	-		-

The UTG line of credit carries interest at a fixed rate of 4.040% 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 2019, 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.