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We study correlation effects in a three-band extended Hubbard model of Cu --O planes within the 1/N mean field approach, in the infinite U limit. Weinvestigate the emerging phase diagram and discuss the low energy scalesassociated with each region. With increasing direct overlap between oxygenorbitals, $t_{pp} >0$, the solution displays a band crossing which, for anextended range of parameters, lies close to the Fermi level. In turn this leadsto the nearly nested character of the Fermi surface and the resulting lineartemperature dependence of the quasi-particle relaxation rate for sufficientlylarge T. We also discuss the effect of band crossing on the opticalconductivity and comment on the possible experimental relevance of ourfindings.Comment: 12 pages, Latex-Revtex, 6 PostScript figures. Submitted to Phys. Rev.

Band crossing and novel low-energy behaviour in a mean field theory of a three-band model on a Cu - O lattice