Although the termination of transcription and 3 RNA processing of the eukaryotic mRNA has been linked to a polyadenylation signal and a transcript cleavage process, much less is known about the termination or processing of nonpolyadenylated RNA polymerase II transcripts. An efficiently expressed plasmid-based expression system was used to study the termination and processing of Schizosaccharomyces pombe U3 small nucleolar RNA (snoRNA) transcripts in vivo. The termination assay was linked to cell transformation, and restriction fragment length polymorphism was used to determine levels of plasmidderived U3 snoRNA. Mutation analyses in vivo indicate that the maturation of the 3 end is not directly dependent on an external cis-acting sequence or structure; rather, it is dependent on a transcript cleavage that can occur hundreds or even thousands of nucleotides downstream of the mature U3 snoRNA sequence. Similarly, termination is dependent on the same transcript cleavage that is localized in a hairpin structure that normally follows the 3 end of the U3 snoRNA but that also can be moved hundreds or thousands of nucleotides downstream. Both processes, however, can be induced simultaneously and equally efficiently with a single unrelated Pac1 endonuclease-labile structure. The results support a "reversed torpedoes" model in which a single cleavage allows exonucleases and/or other protein factors access to the transcript leading to transcription termination in one direction and RNA maturation in the other direction.In eukaryotic cells, the diversity in their DNA-dependent RNA polymerases appears also to be reflected in the mechanisms of transcription termination that each polymerase utilizes. Although studied most intensely, the mechanism(s) of Pol 2 II transcript termination is probably the least understood. In the case of pre-mRNA transcripts, 3Ј end processing and termination are normally coupled; the same RNA signals that direct 3Ј end processing also promote termination downstream of the processing site. At least two alternative models, which are not necessarily mutually exclusive, have been proposed (1). The first, often referred to as the "anti-terminator" model, suggests that polyadenylation triggers a change in polymerase-associated factors that leads to a less processive RNA polymerase; an alternate model suggests that the transcribing RNA polymerase is "torpedoed," being attacked by an exonuclease that gains access at its free end when the pre-mRNA is cut at the polyadenylation site.In addition to mRNA, Pol II is responsible for the synthesis of many noncoding RNAs, including small nuclear and nucleolar RNAs (snRNA and snoRNA