The serpin plasminogen activator inhibitor-1 (PAI-1) spontaneously adopts an inactive or latent conformation by inserting the N-terminal part of the reactive center loop as strand 4 into the major -sheet (sheet A). To examine factors that may regulate reactive loop insertion in PAI-1, we determined the inactivation rate of the inhibitor in the pH range 4.5-13. Below pH 9, inactivation led primarily to latent PAI-1, and one predominant effect of pH on the corresponding rate constant could be observed. Protonation of a group exhibiting a pK a of 7.6 (25°C, ionic strength ؍ 0.15 M) reduced the rate of formation of latent PAI-1 by a factor of 35, from 0.17 h ؊1 at pH 9 to about 0.005 h ؊1 below pH 6. The ionization with a pK a 7.6 was found to have no effect on the rate by which PAI-1 inhibits trypsin and is therefore unlikely to change the flexibility of the loop or the orientation of the reactive center. The peptides Ac-TEAS-SSTA and Ac-TVASSSTA (cf. P14-P7 in the reactive loop of PAI-1) formed stable complexes with PAI-1 and converted the inhibitor to a substrate for tissue type plasminogen activator. We found that peptide binding and formation of latent PAI-1 are mutually exclusive events, similarly affected by the pK a 7.6 ionization. This is direct evidence that external peptides can substitute for strand 4 in -sheet A of PAI-1 and that the pK a 7.6 ionization regulates insertion of complementary, internal or external, strands into this position. A model that accounts for the observed pH effects is presented, and the identity of the ionizing group is discussed based on the structure of latent PAI-1. The group is tentatively identified as His-143 in helix F, located on top of sheet A.Plasminogen activator inhibitor, PAI-1, is a member of the serpin family of serine proteinase inhibitors and inhibits both tPA 1 and urokinase plasminogen activator (1, 2) as well as trypsin (3). The serpins (4), which include most of the inhibitors that regulate blood coagulation and fibrinolysis, are structurally homogenous and are distinguished functionally from other types of protein proteinase inhibitors primarily by the ability to form SDS-stable complexes with target proteinases. The nature of these complexes and the mechanism by which they are formed are poorly understood.Active serpins are metastable folding intermediates with considerable conformational strain (5). They can relax by inserting the N-terminal portion of the reactive center loop as strand 4 in the major -sheet that faces one side of the protein (sheet A) and thereby adopt an inactive, or latent, conformation. This process occurs spontaneously in PAI-1 (6) and has been induced in antithrombin III (5) and ␣ 1 -proteinase inhibitor (7). Inhibitory serpins attain an even greater stability after cleavage of the reactive loop, near or at the susceptible bond, and insertion of the N-terminal portion into -sheet A (8 -10) or after forming complexes with peptides that mimic this part of the loop (11, 12). The fact that serpins with a completed sixstranded sheet...