Termination of RNA polymerase (pol) II transcription in vivo requires the 5-RNA exonuclease Rat1. It was proposed that Rat1 degrades RNA from the 5-end that is created by transcript cleavage, catches up with elongating pol II, and acts like a Torpedo that removes pol II from DNA. Here we test the Torpedo model in an in vitro system based on bead-coupled pol II elongation complexes (ECs). Recombinant Rat1 complexes with Rai1, and with Rai1 and Rtt103, degrade RNA extending from the EC until they reach the polymerase surface but fail to terminate pol II. Instead, the EC retains an ϳ18-nucleotide RNA that remains with its 3-end at the active site and can be elongated. Thus, pol II termination apparently requires a factor or several factors in addition to Rat1, Rai1, and Rtt103, post-translational modifications of these factors, or unusual reaction conditions.Transcription termination involves the dissociation of template DNA from RNA polymerase (pol) 2 that is engaged in an elongation complex (EC). Termination is important for proper gene expression, because defects lead to interference of nonterminated ECs with the initiation events of downstream genes (1, 2). In contrast to pol I and pol III, pol II does not terminate transcription at a specific sequence at the end of a gene (reviewed in Refs. 3, 4). Instead, termination sites seem to be randomly located up to 1 kb downstream of the poly(A) site (Ref. 5 and references therein), where 3Ј-processing of the transcript is conducted by factors that interact with the C-terminal domain of pol II (6).Two different models for pol II termination were suggested. The "anti-terminator model" postulates that binding of 3Ј-processing factors induces a change in the EC that recruits a termination factor or displaces an anti-termination factor (7). The "Torpedo model" was suggested in 1988 (5, 8) and postulates that the 5Ј-end of the RNA that is generated after poly(A) site-dependent cleavage is used as a substrate by a nuclease, which catches up with elongating pol II and dissociates the polymerase from DNA.There is evidence for the Torpedo model and for Rat1 being the Torpedo nuclease. pol II shows termination defects in yeast cells that are deficient in Rat1 or lack Rai1 (9), a factor that binds Rat1 in vivo and stabilizes the Rat1 exonuclease activity in vitro (10). Similar termination defects occur in mammalian cells after knockdown of the Rat1 homolog Xrn2 (11, 12). Rat1-Rai1 localizes to 3Ј-regions of genes together with Rtt103, a protein that contains a C-terminal domain-interacting domain and is likely involved in Rat1 recruitment to ECs (9). The gene encoding Rat1 is essential and was identified in genetic screens for mutants in nuclear export (13) and transcription initiation by RNA polymerase III (14).Rat1 is a nuclear exoribonuclease that processively degrades RNA from the 5Ј-end and is similar in sequence and activity to the cytoplasmic nuclease Xrn1 (15-17). Xrn1 was the first 5Ј-3Ј-exoribonuclease characterized in yeast (18 -21). Xrn1 can rescue the temperature-...