V(D)J recombination proceeds through a series of protein:DNA complexes medi
ated in part by the RAGI and RAG2 proteins. These proteins are responsible
for sequence-specific DNA recognition and DNA cleavage, and they appear to
perform multiple postcleavage roles in the reaction as well. Here we review
the interaction of the RAG proteins with DNA, the chemistry of the cleavag
e reaction, and the higher order complexes in which these events take place
. We also discuss postcleavage functions of the RAG proteins, including rec
ent evidence indicating that they initiate the process of coding end proces
sing by nicking hairpin DNA termini. Finally, we discuss the evolutionary a
nd functional implications of the finding that RAG1 and RAG2 constitute a t
ransposase, and we consider RAG protein biochemistry in the context of seve
ral bacterial transposition systems. This suggests a model of the RAG prote
in active site in which two divalent metal ions serve alternating and oppos
ite roles as activators of attacking hydroxyl groups and stabilizers of oxy
anion leaving groups.