Section 1: On the first day of the first fiscal year after the ratification of this amendment, Article 1, Section 8, Clause 2, of the Constitution of the United States is hereby repealed, and the Congress of the United States shall thereafter have no further authority to borrow money on the credit of the United States except as follows:
Section 2: After the date previously stated that this amendment becomes effective, the Congress of the United States shall have authority to borrow money on the credit of the United States only during time of war actually declared by the Congress, but the debts so contracted by this authority shall not exceed the actual military expenditures directly related to that declared war, and this authority to borrow money on the credit of the United States for wartime military expenditures shall end 90 days after peace is declared.
Section 3: The debts of the United States previously contracted to individuals and nonfederal institutions for money actually loaned to the United States on its credit that were valid prior to the ratification of this amendment shall continue to be honorably recognized thereafter as valid.
Section 4: To facilitate the honorable payment of the debts validated by Sections 2 and 3 above, the Congress shall have authority to replace, once and only once, each debt instrument (or a consolidation of similar debt instruments) so validated, at the time of its/their expiration, by a new debt instrument of equal denominational value to that debt instrument (or consolidation of similar debt instruments) that is fully amortized over a time not to exceed 50 years.
Section 5: The federal courts of the United States shall invalidate any debts of the United States that conflict with the provisions of this amendment.