Synthetic transcripts of satellite 2 DNA from the newt undergo self-catalyzed cleavage in vitro. In this report we present evidence that there are at least two distinct modes of satellite 2 transcript self-cleavage. In one mode, a single cleavage domain folds into a structure which cleaves at a slow rate. This structure may be analogous to, or a variant of, the 'hammerhead' structure believed to be active during the self-cleavage of a number of infectious plant RNAs. In an alternative mode, multiple cleavage domains interact to cleave at an enhanced rate. The permutation of the repeated satellite 2 sequence determines which of these modes of cleavage will predominate, presumably by influencing the overall conformation of the RNA. We present a model for the self-processing of multimeric satellite 2 transcripts which incorporates both of these modes of self-cleavage.
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