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)  December 6, 2006

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 December 5, 2006, The Dewey Electronics Corporation (the "Company")
entered into a renewal of its $500,000 letter of credit agreement with
Sovereign Bank (the "Line of Credit") to February 28, 2007.  As of the
date of this Form 8-K, there are no outstanding borrowings against the
Line of Credit.  The Line of Credit, as previously modified, provides
among other things for (i) an annual interest rate on borrowings equal
to the Bank's prime rate plus .25 percent and (ii) co-collateralization
with the collateral under the Company's Term Loan Agreement with the
Bank, consisting of the Company's accounts receivable, machinery,
equipment, the land and building and other personal property.  A
copy of the Note Modification Agreement with respect to the
Company's demand note for the Line of Credit is attached as
Exhibit 10.1 hereto and is incorporated herein by reference.

Item 2.03.  Creation of a Direct Financial Obligation or an Obligation
under an Off-Balance Sheet Arrangement of a Registrant.

See Item 1.01.

Item 9.01.  Exhibits

10.1 Note Modification Agreement dated December 5, 2006 between The
Dewey Electronics Corporation and Sovereign Bank.




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: December 6, 2006      /s/ John H. D. Dewey
                                John H.D. Dewey
                             President and Chief Executive Officer





INDEX TO EXHIBITS

Exhibit Number              Description

10.1  Note Modification Agreement dated December 5, 2006 between The
Dewey Electronics Corporation and Sovereign Bank, and associated
demand note.