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BID1 is a nodule-specific signal peptide peptidase (SPP) that is central to ER structural dynamics and host protein secretion during legume-rhizobia symbiosis. It localizes specifically to the ER membrane and expresses exclusively in nodule cells infected with symbiosomes. In bid1 mutant, symbiosome differentiation is blocked. In summary, the nodule-specific SPP is necessary for ER-symbiosome proximal association, host protein secretion, and symbiosome differentiation.