Structural maintenance of chromosomes (SMC) proteins interact with DNA in chromosome condensation, sister chromatid cohesion, DNA recombination, and gene dosage compensation. How individual SMC proteins and their functional domains bind DNA has not been described. We demonstrate the ability of the Cterminal domains of Saccharomyces cerevisiae SMC1 and SMC2 proteins, representing two major subfamilies with different functions, to bind DNA in an ATP-independent manner. Three levels of DNA binding specificity were observed: 1) a >100-fold preference for doublestranded versus single-stranded DNA; 2) a high affinity for DNA fragments able to form secondary structures and for synthetic cruciform DNA molecules; and 3) a strong preference for AT-rich DNA fragments of particular types. These include fragments from the scaffoldassociated regions, and an alternating poly(dA-dT)-poly(dT-dA) synthetic polymer, as opposed to a variety of other polymers. Reannealing of complementary DNA strands is also promoted primarily by the C-terminal domains. Consistent with their in vitro DNA binding activity, we show that overexpression of the SMC C termini increases plasmid loss without altering viability or cell cycle progression.The structural maintenance of chromosomes (SMC) 1 protein family, with members from lower and higher eukaryotes, may be divided into four subfamilies (SMC1 to SMC4) and two SMC-like protein subfamilies (SMC5 and SMC6) (for reviews see Refs. 1-7). Members of this family appear to function primarily as heterodimers and are implicated in a large range of activities that modulate chromosome structure and organization. Studies of yeast strains deficient in SMC1 and SMC2 show defects in the segregation of mitotic chromosomes (8 -10). A role in chromosome condensation was demonstrated in a cell-free chromosome condensation assay based on Xenopus laevis oocyte extracts (11), in which SMC2 and SMC4 subtypes were identified as essential components of the condensin protein complex (12). More recently, the Smc1p and Smc3p of Saccharomyces cerevisiae were shown to be essential for sister chromatid cohesion (13,14), and in Caenorhabditis elegans, two SMC protein homologs, MIX-1 and DPY-27, are involved in gene dosage compensation (15, 16). Finally, evidence for a role of SMC proteins in DNA recombination and repair has been supported by both genetic and biochemical studies. The Schizosaccharomyces pombe Rad18 gene and its S. cerevisiae homolog RHC18 are SMC-like and were found to act in an unusual postreplicative recombinational repair pathway (17), whereas mammalian SMC1 and SMC3 proteins were described as essential subunits of a recombinational repair protein complex (RC-1), isolated from calf thymus (18,19).SMC proteins display a very characteristic structure: two coiled-coil domains separate evolutionarily conserved head and tail domains, which contain an NTP binding motif (Walker A box) in the N terminus, and a DA box (Walker B) in the C terminus (20). The similarity of SMC proteins to motor proteins such as kinesin a...