The spliceosomal small nuclear RNAs U1, U2, U4, and U5 are transcribed by RNA polymerase II as precursors with extensions at their 3 ends. The 3 processing of these pre-snRNAs is not understood in detail. Two pathways of pre-U2 RNA 3 processing in vitro were revealed in the present investigation by using a series of human wild-type and mutant pre-U2 RNAs. Substrates with wild-type 3 ends were initially shortened by three or four nucleotides (which is the first step in vivo), and the correct mature 3 end was then rapidly generated. In contrast, certain mutant pre-U2 RNAs displayed an aberrant 3 processing pathway typified by the persistence of intermediates representing cleavage at each internucleoside bond in the precursor 3 extension. Comparison of the wild-type and mutant pre-U2 RNAs revealed a potential base-pairing interaction between nucleotides in the precursor 3 extension and a sequence located between the Sm domain and stem-loop III of U2 RNA. Substrate processing competition experiments using a highly purified pre-U2 RNA 3 processing activity suggested that only RNAs capable of this base-pairing interaction had high affinity for the pre-U2 RNA 3 processing enzyme. The importance of this postulated base-pairing interaction between the precursor 3 extension and the internal region between the Sm domain and stem-loop III was confirmed by the results obtained with a compensatory substitution that restores the base pairing, which displayed the normal 3 processing reaction. These results implicate a precursor-specific base-paired structure involving sequences on both sides of the mature cleavage site in the 3 processing of human U2 RNA.Small nuclear RNAs (snRNAs) are essential components of ribonucleoprotein particles that are involved in pre-mRNA processing (1, 16). The biosynthetic maturation pathway of the spliceosomal snRNAs involves many steps in both the nucleus and cytoplasm (20,35). Except for U6 (14,26), the snRNAs of the major class of spliceosomes are transcribed by RNA polymerase II. Once transcribed, pre-U1, -U2, -U4, and -U5 snRNAs carrying 3Ј extensions of various lengths are rapidly transported to the cytoplasm, where they undergo small nuclear ribonucleoprotein (snRNP) assembly, 5Ј-cap hypermethylation, and 3Ј processing before being imported back into the nucleus (3, 4, 6, 8, 13, 17-20, 25, 32, 34, 35).U2 RNA is the second most abundant snRNA in mammalian cell nuclei (25). Pre-U2 RNA molecules having 3Ј extensions of 10 to 16 nucleotides have been detected in both rat liver (29) and HeLa cells (7,32). We have previously shown that pre-U2 RNA 3Ј processing occurs accurately in several in vitro systems of progressive refinement, including HeLa cell whole cytoplasmic extract (32), an ammonium sulfate fraction of a HeLa cell cytoplasmic S100 fraction (12), and a 15S glycerol gradient fraction of the latter (9, 12). Because this 15S system is free of a nonspecific ribonuclease present in the former preparations, it has enabled us to study pre-U2 RNA 3Ј processing in considerable detail (9). In co...