PC4 is a nuclear DNA-binding protein that stimulates activator-depende
nt class II gene transcription in vitro. Recent biochemical and X-ray
analyses have revealed a unique structure within the C-terminal domain
of PC4 that binds tightly to unpaired double-stranded (ds)DNA. The ce
llular function of this evolutionarily conserved dimeric DNA-binding f
old is unknown. Here we demonstrate that PC4 represses transcription t
hrough this moth. Interaction with melted promoters is not required fo
r activator-dependent transcription in vitro. The inhibitory activity
is attenuated on bona fide promoters by (i) transcription factor TFIIH
and (ii) phosphorylation of PC4. PC4 remains a potent inhibitor of tr
anscription in regions containing unpaired ds DNA, in single-stranded
DNA that can fold into two antiparallel strands, and on DNA ends. Our
observations are consistent with a novel inhibitory function of PC4.