In theory crosslinking of binders during or after film formation will result in an improvement of the physical and mechanical properties of the final paint film. Our investigation has been focused on the reaction of an acetoacetate moeity with a multifunctional amine in a latex binder system. Various aspects of two-pack acetoacetate functional latexes have been investigated. Firstly model latexes have been prepared and characterized in terms of partition of functional groups and binder material over the continuous and organic phases. It has been shown that incorporation of the aceotacetate functional monomers in the latex is successful and that the protection against hydrolysis is adequate. Secondly the reactivity with a multifunctional amine compound has been studied. The decline of the number of reactive groups has been associated with the film forming capacity and the influences on the film properties. Reaction of the components starts just after mixing, resulting in alternation of the particles and consequently influencing the film forming process negatively.