Human hepatic lipase (hHL) mainly exists cell surface bound, whereas mouse HL (mHL) circulates in the blood stream. Studies have suggested that the carboxyl terminus of HL mediates cell surface binding. We prepared recombinant hHL, mHL, and chimeric proteins (hHLmt and mHLht) in which the carboxyl terminal 70 amino acids of hHL were exchanged with the corresponding sequence from mHL. The hHL, mHL, and hHLmt proteins were catalytically active using triolein and tributyrin as substrates. In transfected cells, the majority of hHLs bound to the cell surface, with only 4% of total extracellular hHL released into heparin-free media, whereas under the same conditions, 61% of total extracellular mHLs were released. Like mHL, hHLmt showed decreased cell surface binding, with 68% of total extracellular hHLmt released. To determine the precise amino acid residues involved in cell surface binding, we prepared a truncated hHL mutant (hHL 471 ) by deleting the carboxyl terminal five residues (KRKIR). The hHL 471 also retained hydrolytic activity with triolein and tributyrin, and showed decreased cell surface binding, with 40% of total extracellular protein released into the heparin-free media. These data suggest that the determinants of cell surface binding exist within the carboxyl terminal 70 amino acids of hHL, of which the last five residues play an important role. Mature human hepatic lipase (hHL) contains 476 amino acids, and its apparent molecular mass varies from 55 to 69 kDa (1-3), presumably owing to variation in the magnitude of glycosylation at its four N -linked glycosylation sites. hHL is a member of a superfamily of lipases and phospholipases (EC 3.1.1.3) that share the GxSxG motif at the active site and a catalytic Asp-His-Ser charge relay triad found in a typical serine hydrolase (4). Known members of this superfamily include lipoprotein lipase (LPL), endothelial lipase, pancreatic lipase, and HL (1-3, 5-7). The active hHL is a homodimer (8) with broad substrate specificity and is involved in the metabolism of HDLs and triacylglycerol (TG)-rich lipoproteins (9-13).A series of studies have been conducted to compare heparin binding, enzyme activity, and substrate specificities between HL and LPL (14-18). The amino acid sequences of HL and LPL show close sequence homology to that of pancreatic lipase. Thus, based on the known structure of pancreatic lipase showing a two-domain structure, HL and LPL have been modeled into two domains with distinct functions. The active sites of HL and LPL reside within the respective N-terminal domains. Relative to TG hydrolysis, HL displays higher phospholipase activity than LPL. The substrate specificity of HL and LPL is governed by a 22-amino acid loop ("lid") within the N-terminal domain of the respective lipases (15). The activity of LPL requires the cofactor apolipoprotein C-II (apoC-II) and is sensitive to high salt (i.e., 1 M NaCl), whereas the activity of HL is independent of apoC-II and remains active at 1 M NaCl. Studies with a chimeric protein composed of ami...