Activation-induced cytidine deaminase (AID) is a B cell enzyme essential for Ig somatic hypermutation and class switch recombination. AID acts on ssDNA, and switch regions of Ig genes, a target of AID, form R-loops that contain ssDNA. Nevertheless, how AID action is specifically targeted to particular DNA sequences is not clear. Because mutations altering cotranscriptional messenger ribonucleoprotein (mRNP) formation such as those in THO/TREX in yeast promote R-loops, we investigated whether the cotranscriptional assembly of mRNPs could affect AID targeting. Here we show that AID action is transcription-dependent in yeast and that strong and transcription-dependent hypermutation and hyperrecombination are induced by AID if cells are deprived of THO. In these strains AID-induced mutations occurred preferentially at WRC motifs in the nontranscribed DNA strand. We propose that a suboptimal cotranscriptional mRNP assembly at particular DNA regions could play an important role in Ig diversification and genome dynamics.hyperrecombination ͉ hypermutation ͉ messenger ribonucleoprotein biogenesis ͉ R-loops A ctivation-induced cytidine deaminase (AID) is a specific B cell enzyme believed to be responsible for the initiation of somatic hypermutation (SHM) and class switch recombination (CSR) during B cell differentiation (1-3). Many studies have shown that AID acts directly on DNA (4), the natural target for AID action in the variable and switch (S) regions for SHM and CSR, respectively. The specific mechanisms of AID function are still unclear, but evidence suggests that the preferential target of AID may be ssDNA (5, 6). Thus, in vitro experiments have shown that AID deaminates ssDNA and dsDNA that is transcribed (5-7), and transcription has been shown to be required for both SHM and CSR in vivo (8,9).Studies have shown a strand preference for the action of AID during in vitro transcription with AID-induced mutations detected preferentially in the nontranscribed (NT) strand (6,(10)(11)(12). Analysis of the products of SHM in B cells, however, reveals that both DNA strands are mutated (13). Other in vitro studies have shown that AID can deaminate both strands within regions of supercoiled DNA (14) and that the ssDNA-binding replication protein A is required for deamination of SHM targets (15). All of these findings are consistent with the idea that transient formation of ssDNA during transcription facilitates AID action.Along the same line, formation of R-loops during transcription of the S regions has been proposed (16). Such R-loops would possibly provide AID with ssDNA substrates at its target region because there the transcribed (T) strand hybridizes with the nascent RNA and the NT strand is present as ssDNA. Because of its high G content, the NT DNA strand at S regions could be stabilized by the formation of parallel four-stranded G quartets (17, 18). Indeed, AID appears to bind specifically to G-loops within transcribed S regions (19) and can deaminate the displaced strand of a transcription-induced R-loop in vitro ...