UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

---------------------------

FORM 8-K

CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported)  February 28, 2005

THE DEWEY ELECTRONICS CORPORATION.
(Exact name of registrant as specified in its charter)


New York 
(State or other 
jurisdiction of 
incorporation)

0-2892
(Commission File 
Number)

13-1803974
(I.R.S. Employer  
Identification Number)


27 Muller Road
Oakland, New Jersey  
(address of principal executive 
offices)
07436
(Zip Code)


Registrant's telephone number, including area code: (201) 337-4700


Check the appropriate box below if the Form 8-K filing is intended to 
simultaneously satisfy the filing obligation of the registrant under 
any of the following provisions:

__  Written communications pursuant to Rule 425 under the Securities 
Act

__  Soliciting material pursuant to Rule 14a-12 under the Exchange 
Act

__  Pre-commencement communications pursuant to Rule 14d-2(b) under 
the Exchange Act

__  Pre-commencement communications pursuant to Rule 13e-4(c) under 
the Exchange Act



Item 1.01.  Entry into a Material Definitive Agreement

On February 24, 2005, The Dewey Electronics Corporation (the "Company") 
and Sovereign Bank (the "Bank") entered into a Term Loan Agreement (the 
"Loan Agreement") that replaced, and restructured the remaining balance 
due on, the Company's Mortgage Note agreement with the Bank which 
matured in January 2005.  Pursuant to the Loan Agreement, the Company 
has borrowed $(292,187) from the Bank for a term ending February 23, 
2007, at a fixed annual interest rate of 5.56 percent.  This loan is secured 
by a first lien on all of the Company's accounts receivable, machinery, 
equipment and other personal property (the "Collateral") and is subject 
to customary representations, covenants, and default provisions in 
favor of the Bank.  

The Company also has a line of credit agreement with the Bank in the 
amount of $500,000 at an annual interest rate equal to the Bank's prime 
rate plus .25 percent.  Effective November 1, 2004, this line of credit 
agreement was renewed through October 31, 2005.  As of February 24, 
2005, there were no outstanding borrowings against this line of credit 
facility.  In the event that the Company borrows funds under this line 
of credit facility, the loan would be co-collateralized by the 
Collateral.

During 1998, Gordon C. Dewey, the Company's co-founder, lent the 
Company a total of $200,000. The Company's note payable is unsecured 
and bears interest at the rate of 9 percent per annum.  This note was 
subordinate to the Company's Mortgage Note with the Bank, but is not 
subordinate to the new Loan Agreement with the Bank described above. It 
is repayable upon demand by Frances D. Dewey, Mr. Dewey's widow.



SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 
1934, the registrant has duly caused this report to be signed on its 
behalf by the undersigned hereunto duly authorized.

THE DEWEY ELECTRONICS CORPORATION

Date: February 28, 2005

/s/ Thom A. Velto
Thom A. Velto, Treasurer
Principal Accounting Officer