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Mode of Action of Restriction Enzymes - The restriction enzyme binds to the recognition site and checks for the methylation (presence of methyl group on the DNA at a specific nucleotide).

If there is methylation in the recognition sequence, then, it just falls off the DNA and does not cut.

If only one strand in the DNA molecule is methylated in the recognition sequence and the other strand is not methylated, then RE (only type I and type III) will methylate the other strand at the required position.

The methyl group is taken by the RE from S-adenosyl methionine by using modification site present in the restriction enzymes.

However, type II restriction enzymes take the help of another enzyme called methylase, and methylate the DNA. Then RE clears the DNA. If there is no methylation on both the strands of DNA, then RE cleaves the DNA.

It is only by this methylation mechanism that, RE, although present in bacteria, does not cleave the bacterial DNA but cleaves the foreign DNA. But there are some restriction enzymes which function exactly in reverse mode. They cut the DNA if it is a methylate.

Star activity Sometimes restriction enzymes recognize and cleave the DNA strand at the recognition site with asymmetrical palindromic sequence, for example Bam HI cuts at the sequence GA TCC, but under extreme conditions such as low ionic strength it will cleave in any of the following sequence NGA TCC, GPOA TCC, GGNTCC. Such an activity of the RE is called star activity.