Neural cell adhesion molecule Ll is a cell surface glycoprotein required fo
r the correct development of the nervous system. Ll exists as two isoforms
encoded by mRNA species that either collectively incorporate or exclude exo
ns 2 and 27. Neurons utilize only the full-length isoform, whereas Schwann
cells, kidney cells, and blood lymphocytes only express the short form of L
1. Still other cells, oligodendrocytes, regulate Ll isoform expression in a
maturation-dependent manner. The RSLE motif encoded by exon 27 is known to
have a role in clathrin-mediated endocytosis of L1, but the function of th
e exon 2-encoded motif (YEGHHV) is unknown. Here we show that this motif is
required for the optimal binding of Ll to several neural ligands and is li
kely to be important for nervous system development. Thus, alternative use
of exon 2 is a mechanism for regulating ligand interactions with L1.