Abstract
A dynamical model of the η-nucleon interaction is constructed which satisfies the requirements of analyticity and unitarity as well as including the most important single-particle exchange terms as an interaction. The resulting model depends on two parameters: the η-nucleon coupling constant gη and a cutoff. It is found that a reasonably good fit to the η-production data and the π-nucleon phase-shift analysis can be obtained. Finally it is shown that the strong rise in η production just above the threshold implies the existence of a J=12 odd-parity nonstrange baryon of mass 1420-1460 MeV.