The unfolded protein response is an intracellular signaling pathway that, i
n response to accumulation of misfolded proteins in the lumen of the endopl
asmic reticulum (ER), upregulates transcription of ER resident chaperones.
A key step in this pathway is the nonconventional, regulated splicing of th
e mRNA encoding the positive transcriptional regulator Hac1p, In the yeast
Saccharomyces cerevisiae, the bifunctional transmembrane kinase/endoribonuc
lease Ire1p cleaves HAC1 mRNA at both splice junctions and tRNA ligase join
s the two exons together. We have reconstituted HAC1 mRNA splicing in an ef
ficient in vitro reaction and show that, in many ways, the mechanism of HAC
1 mRNA splicing resembles that of pre-tRNA splicing. In particular, Ire1p e
ndonucleolytic cleavage leaves 2',3'-cyclic phosphates, the excised exons r
emain associated by base pairing, and exon ligation by tRNA ligase follows
the same chemical steps as for pre-tRNA splicing. To date, this mechanism o
f RNA processing is unprecedented for a messenger RNA. In contrast to the s
triking similarities to tRNA splicing, the structural features of the splic
e junctions recognized by Ire1p differ from those recognized by tRNA endonu
clease. We show that small stem-loop structures predicted to form at both s
plice junctions of HAC1 mRNA are required and sufficient for Ire1p cleavage
.