Model for a role of SAT III RNA in centromere regulation. SAT III RNA interaction with CENP-C is required to stably localize CENP-C and therefore CENP-A to centromeres. Disruption of this process by SAT III knockdown impairs a stable association of CENP-C and CENP-A with centromeres and disrupts the formation of a functional kinetochore during mitosis. This in turn results in reduced chromosomal attachment to the spindle, lagging chromosomes, and general genome instability.