The joint final rule corrects and clarifies revised CRA regulations published in the Federal Register on May 4, 1995 (see FIL-35-95 , dated May 17, 1995). The revised CRA regulations are being phased in over two years, with the new performance standards for small institutions going into effect on January 1, 1996. Also, beginning January 1, 1996, an institution may elect to: submit a strategic plan for approval instead of being evaluated under the performance tests; seek designation as a wholesale or limited purpose institution to be evaluated under the new community development test: or he evaluated under the new lending, service and investment tests for large institutions.

As described in the attached Federal Register notice, the joint final rule corrects two cross references in the revised regulations. It also clarifies the rules governing the transition between the previous CRA requirements and the revised ones. The attached joint final rule clarifies that when an institution becomes subject to the performance tests and standards of the revised rules—either voluntarily or mandatorily—the institution must comply with all pertinent parts of the revised rules. The old CRA rules no longer will apply to that institution.

Questions about this final rule should be addressed to your Regional Office of the FDIC's Division of Compliance and Consumer Affairs or the FDIC personnel listed on Page 66048 of the attached notice.