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: May 31, 2006
                        (Date of earliest event reported)


                            eLEC COMMUNICATIONS CORP.
             (Exact name of Registrant as specified in its charter)


                                    New York
                 (State or other jurisdiction of incorporation)

              0-4465                                       13-2511270
      (Commission File No.)                             (I.R.S. Employer
                                                       Identification No.)

                          75 South Broadway, Suite 302
                          White Plains, New York 10601
               (Address of principal executive offices; zip code)

                                 (914) 682-0214
              (Registrant's telephone number, including area code)

                                       N/A
          (Former Name or Former Address, if changed Since Last Report)

         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 (see General Instruction A.2. below):

         |_|      Written   communications   pursuant  to  Rule  425  under  the
                  Securities Act (17 CFR 230.425)

         |_|      Soliciting material pursuant to Rule 14a-12 under the Exchange
                  Act (17 CFR 240.14a-12)

         |_|      Pre-commencement communications pursuant to Rule 14-2(b) under
                  the Exchange Act (17 CFR 240.14d-2(b))

         |_|      Pre-commencement communications pursuant to Rule 13-4(e) under
                  the Exchange Act (17 CFR 240.13e-4(c))

<PAGE>

                SECTION 1 - REGISTRANT'S BUSINESS AND OPERATIONS

Item 1.01.        Entry into a Material Definitive Agreement.

         Effective  May 31,  2006  eLEC  Communications  Corp.  (the  "Company")
consummated a private  placement with Laurus Master Fund, Ltd., a Cayman Islands
corporation ("Laurus"), pursuant to which the Company issued to Laurus a secured
term note in the  principal  amount of $1,700,000  (the "Note"),  an amended and
restated  secured  term note that amended and  restated  the  Company's  secured
convertible term note in the original  principal amount of $2,000,000  issued to
Laurus on February 8, 2005 ("Amended  Note 1"), an amended and restated  secured
term note that amended and restated the Company's secured  convertible term note
in the original  principal amount of $2,000,000 issued to Laurus on November 30,
2005 ("Amended Note 2") and a common stock purchase warrant (the "Warrant") that
entitles  Laurus to  purchase up to  3,359,856  shares of the  Company's  common
stock, par value $.10 per share (the "Common  Stock").  The Note and the Warrant
were sold to Laurus,  an  "accredited  investor" (as such term is defined in the
rules promulgated under the Securities Act of 1933, as amended (the "Act")), for
a purchase price of $1,700,000.

         The following  describes certain of the material terms of the financing
transaction with Laurus. The description below is not a complete  description of
the  material  terms of the  transaction  and is  qualified  in its  entirety by
reference to the  agreements  entered into in connection  with the  transaction,
copies of which are included as exhibits to this Current Report on Form 8-K:

         Note Maturity Date and Interest Rate. Absent earlier  redemption by the
Company as described  below,  the Note matures on May 31,  2009.  Interest  will
accrue on the unpaid  principal  amount of the Note at a rate per annum equal to
the "prime rate"  published in The Wall Street  Journal from time to time,  plus
two percent (2%).  Initially,  interest  will accrue only on $650,000  principal
amount of the Note (the "Amortizing Principal Amount"). The remaining $1,050,000
principal amount of the Note (the  "Non-Amortizing  Principal  Amount") does not
begin to accrue  interest  until it is disbursed,  with the written  approval of
Laurus,  from a  restricted  cash  account  in  conjunction  with the  Company's
proposed acquisition of Liberty Bell Telecom, LLC.

         Payment of Interest and Principal. Interest on the Amortizing Principal
Amount of the Note is payable  monthly on the first day of each month during the
term of the Note,  commencing  on July 1,  2006.  The  Non-Amortizing  Principal
Amount does not require  interest  payments until  interest  begins to accrue on
such amount.  Commencing  June 1, 2007,  the Company is required to make monthly
principal payments of $27,083.33 on the Amortizing Principal Amount. In addition
to the $27,083.33  principal  payment,  the Company will also make an amortizing
principal  payment for the  Non-Amortizing  Principal  Amount if such amount has
been  released from the  restricted  cash  account.  Any  principal  amount that
remains outstanding on May 31, 2009 shall be due and payable at that time.

<PAGE>

         Amended Note 1. Amended Note 1 amends and restates in its entirety (and
is given in substitution for and not in satisfaction of) the $2,000,000  Secured
Convertible Term Note made by the Company in favor of Laurus on February 8, 2005
note.  The  principal  amendments to the February 8, 2005 note in Amended Note 1
are the elimination of the conversion  features that permitted the conversion of
unpaid  principal and interest on the February 8, 2005 note into Common Stock of
the Company and the  reduction in the interest  rate payable on the  outstanding
principal  amount of the  February 8, 2005 note from the "prime rate" plus three
percent (3%) to the "prime rate" plus two percent (2%). The remaining  principal
and  interest  payments  on this note,  which the Company  continues  to make in
monthly amounts of $60,606.06, is no longer convertible.

         Amended Note 2. Amended Note 2 amends and restates in its entirety (and
is given in substitution for and not in satisfaction of) the $2,000,000  Secured
Convertible Term Note made by the Company in favor of Laurus on the November 30,
2005 note. The principal amendment to the November 30, 2005 note in Amended Note
2 is the elimination of the conversion features that permitted the conversion of
unpaid principal and interest on the November 30, 2005 note into Common Stock of
the Company.  The remaining  principal and interest payments on this note, which
the Company  continues to make in monthly  amounts of  $33,333.33,  is no longer
convertible.

         Security for Notes. Each of the Note, Amended Note 1 and Amended Note 2
is  secured  by a blanket  lien on  substantially  all of the  Company's  assets
pursuant  to the terms of a security  agreement  executed by the Company and its
subsidiaries  in favor of Laurus.  In  addition,  the  Company  has  pledged its
ownership  interests in its  subsidiaries  pursuant to a stock pledge  agreement
executed by the Company in favor of Laurus securing its  obligations  under such
promissory  notes.  If an event of default occurs under the security  agreement,
the stock pledge agreement or any promissory note payable to Laurus,  Laurus has
the right to accelerate payments under such promissory notes and, in addition to
any other remedies  available to it, to foreclose upon the assets  securing such
promissory notes.

         Warrant Terms. The Warrant grants Laurus the right to purchase for cash
up to 3,359,856  shares of Common Stock at an exercise price of $0.10 per share.
The Warrant  expires on May 31,  2020.  If the  Company  repays the Note in full
prior to May 31, 2007,  and pays Laurus an  additional  amount of $100,000,  the
Company has the right to reduce the number of shares  originally  issuable  upon
exercise of the Warrant by  1,175,950  shares,  such that the maximum  number of
shares that may be purchased  upon  exercise of the Warrant  shall be reduced to
2,183,906 shares. The Warrant does not contain  registration rights and requires
Laurus to limit the sale on any trading day of any shares of Common Stock issued
upon the  exercise  of the  Warrant  to a maximum  of ten  percent  (10%) of the
aggregate number of shares of Common Stock traded on such trading day.

         Restrictions on Exercise of Warrant.  Laurus is not entitled to receive
shares of Common Stock upon  exercise of the Warrant if such receipt would cause
Laurus to be deemed to  beneficially  own in excess of 4.99% of the  outstanding
shares of Common  Stock on the date of

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<PAGE>

issuance of such  shares.  Such  provision  may be waived by Laurus upon 75 days
prior written notice to the Company.

                        SECTION 2 - FINANCIAL INFORMATION

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

         Please see Item 1.01 of this Current  Report on Form 8-K, which Item is
incorporated herein by reference,  for a description of the terms of the sale of
the Note and the Warrant to Laurus.

                   SECTION 3 - SECURITIES AND TRADING MARKETS

Item 3.02.  Unregistered Sales of Equity Securities.

         (a) Please see Item 1.01 of this Current Report on Form 8-K, which Item
is  incorporated  herein by  reference,  for a  description  of the terms of the
issuance of the Warrant and its associated  excersisability  features.  The Note
and the  Warrant  were issued in reliance  on the  exemption  from  registration
provided by Section  4(2) of the Act, on the basis that their  issuance  did not
involve a public offering,  no underwriting fees or commissions were paid by the
Company in connection with such sale and Laurus  represented to the Company that
it is an "accredited investor," as defined in the Act.

         (b) In connection with the transactions  described in Item 1.01 of this
Current  Report on Form 8-K,  the Company  paid to Source  Capital  Group,  Inc.
("Source Capital"),  in consideration of the introduction made by Source Capital
of Laurus to the Company,  a finder's fee in the amount of $52,000 and issued to
or at the  direction of Source  Capital  common  stock  purchase  warrants  (the
"Source  Warrants")  to purchase up to an aggregate of 148,571  shares of Common
Stock at an exercise price of $0.35 per share. The Source Warrants expire on May
31, 2010.  The Source  Warrants  were issued in reliance on the  exemption  from
registration  provided  by  Section  4(2) of the Act,  on the basis  that  their
issuance did not involve a public  offering and satisfied the conditions of Rule
506 of the Act,  and Source  Capital  represented  to the Company  that it is an
"accredited investor," as defined in the Act.

                            SECTION 8 - OTHER EVENTS

Item 8.01         Other Events.

         On June 8, 2006, the Company issued a press release announcing the sale
of the Note and the Warrant to Laurus.  A copy of the press  release is attached
hereto as Exhibit 99.1.

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<PAGE>

                  SECTION 9 - FINANCIAL STATEMENT AND EXHIBITS

Item 9.01         Financial Statements and Exhibits.

(c)      Exhibits.

        Number    Documents
        ------    ---------

         10.1     Securities  Purchase  Agreement,  dated  as of May  31,  2006,
                  between eLEC Communications Corp. and Laurus Master Fund, Ltd.

         10.2     Secured  Term Note,  dated as of May 31,  2005,  between  eLEC
                  Communications Corp. and Laurus Master Fund, Ltd.

         10.3     Reaffirmation and Ratification Agreement,  dated as of May 31,
                  2006,  executed by eLEC  Communications  Corp.,  New  Rochelle
                  Telephone    Corp.,    Telecarrier    Services,    Inc.,   Vox
                  Communications  Corp.,  Line One,  Inc., AVI Holding Corp. and
                  TelcoSoftware.com Corp.

         10.4     Funds Escrow Agreement, dated as of May 31, 2006, between eLEC
                  Communications  Corp., Loeb & Loeb LLP and Laurus Master Fund,
                  Ltd.

         10.5     Restricted  Account  Agreement  dated as of May 31, 2006 among
                  North Fork Bank, eLEC  Communications  Corp. and Laurus Master
                  Fund, Ltd.

         10.6     Letter  Agreement  dated  as of  May  31,  2006  between  eLEC
                  Communications Corp. and Laurus Master Fund, Ltd.

         10.7     Common  Stock  Purchase  Warrant,  dated  as of May  31,  2006
                  between eLEC Communications Corp. and Laurus Master Fund, Ltd.

         10.8     Form  of  Common  Stock   Purchase   Warrant  issued  by  eLEC
                  Communications  Corp.  to or on the  order of  Source  Capital
                  Group, Inc.

         10.9     Amended and Restated  Secured  Term Note,  dated as of May 31,
                  2006 between eLEC Communications Corp. and Laurus Master Fund,
                  Ltd. amending and restating the Secured  Convertible Term Note
                  dated February 8, 2005.

         10.10    Amended and Restated  Secured  Term note,  dated as of May 31,
                  2006 between eLEC Communications Corp. and Laurus Master Fund,
                  Ltd. amending and restating the Secured  Convertible Term Note
                  dated November 30, 2005.

         99.1     Press release of eLEC Communications Corp. dated June 7, 2006.


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                                   SIGNATURES

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

                                               eLEC COMMUNICATIONS CORP.


Date:  June 8, 2006                            By:      /s/ Paul H. Riss
                                                    ---------------------------
                                                      Paul H. Riss
                                                      Chief Executive Officer



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