My primary drive chain (between engine and trans) has 14mm of slack in it, service wear maximum is specified at 25mm. I have the engine torn down to the crank so I suppose now would be the best time to replace it. However, that was not in the $600 budget to rebuild this bike and would put me approx $140 over budget if I replace it. It has 11mm to go yet, stretching and wear of the sprockets etc... I think that's enough where I can get away with reusing the old one but I have to keep this bike for the next 5 years as bikes are my main transportation while I go back to finish gettin my M.D.

it's a 35mi round trip to campus and back plus the riding around home I'd say I'm planning on racking up 5k miles a year on this bike (i have two others plus two cars to pick up the rest)
I'm wondering if anyone's ever had that go out on them before? Personally I've never came across it in a motorcycle, I don't know what happens when it stretches beyond the service maximum, if that just means the chain will be weakened and snap? if the slack could jam on the crank or trans? I had the chain go out on an old exciter sled but that chain snapped and that just left me running and no forward motion.
Bike is an 85 Kaw ZX550A1 (gpz550) and is undergoing a bottom up frame off restoration and rebuild. (see: 1985 kaw rebuild questions)