diff --git a/compiler/frontend/src/org/jetbrains/jet/lang/resolve/ControlFlowAnalyzer.java b/compiler/frontend/src/org/jetbrains/jet/lang/resolve/ControlFlowAnalyzer.java
index 86c3700fa5c..c0e06521de1 100644
--- a/compiler/frontend/src/org/jetbrains/jet/lang/resolve/ControlFlowAnalyzer.java
+++ b/compiler/frontend/src/org/jetbrains/jet/lang/resolve/ControlFlowAnalyzer.java
@@ -26,12 +26,14 @@ import static org.jetbrains.jet.lang.types.TypeUtils.NO_EXPECTED_TYPE;
 public class ControlFlowAnalyzer {
     private TopDownAnalysisContext context;
     private ExpressionTypingServices typeInferrerServices;
-    private final JetControlFlowDataTraceFactory flowDataTraceFactory;    
+    private final JetControlFlowDataTraceFactory flowDataTraceFactory;
+    private final boolean declaredLocally;
 
-    public ControlFlowAnalyzer(TopDownAnalysisContext context, JetControlFlowDataTraceFactory flowDataTraceFactory) {
+    public ControlFlowAnalyzer(TopDownAnalysisContext context, JetControlFlowDataTraceFactory flowDataTraceFactory, boolean declaredLocally) {
         this.context = context;
         this.flowDataTraceFactory = flowDataTraceFactory;
         this.typeInferrerServices = context.getSemanticServices().getTypeInferrerServices(context.getTrace());
+        this.declaredLocally = declaredLocally;
     }
 
     public void process() {
@@ -60,9 +62,11 @@ public class ControlFlowAnalyzer {
     }
 
     private void checkFunction(JetDeclarationWithBody function, FunctionDescriptor functionDescriptor, final @NotNull JetType expectedReturnType) {
+        assert function instanceof JetDeclaration;
+
         JetExpression bodyExpression = function.getBodyExpression();
         if (bodyExpression == null) return;
-        JetFlowInformationProvider flowInformationProvider = new JetFlowInformationProvider((JetElement) function, bodyExpression, flowDataTraceFactory, context.getTrace());
+        JetFlowInformationProvider flowInformationProvider = new JetFlowInformationProvider((JetDeclaration) function, bodyExpression, flowDataTraceFactory, context.getTrace());
 
         final boolean blockBody = function.hasBlockBody();
         List<JetElement> unreachableElements = Lists.newArrayList();
@@ -108,8 +112,9 @@ public class ControlFlowAnalyzer {
                 }
             });
         }
-
-        //flowInformationProvider.markUninitializedVariables(function.asElement());
+        if (!declaredLocally) {
+            flowInformationProvider.markUninitializedVariables(function.asElement());
+        }
     }
 
     private void checkProperty(JetProperty property) {
diff --git a/compiler/frontend/src/org/jetbrains/jet/lang/resolve/TopDownAnalyzer.java b/compiler/frontend/src/org/jetbrains/jet/lang/resolve/TopDownAnalyzer.java
index ca3b4d4148d..32755ce154c 100644
--- a/compiler/frontend/src/org/jetbrains/jet/lang/resolve/TopDownAnalyzer.java
+++ b/compiler/frontend/src/org/jetbrains/jet/lang/resolve/TopDownAnalyzer.java
@@ -55,16 +55,17 @@ public class TopDownAnalyzer {
                     public ClassObjectStatus setClassObjectDescriptor(@NotNull MutableClassDescriptor classObjectDescriptor) {
                         return ClassObjectStatus.NOT_ALLOWED;
                     }
-                }, Collections.<JetDeclaration>singletonList(object), JetControlFlowDataTraceFactory.EMPTY);
+                }, Collections.<JetDeclaration>singletonList(object), JetControlFlowDataTraceFactory.EMPTY, true);
     }
 
-    public static void process(
+    private static void process(
             @NotNull JetSemanticServices semanticServices,
             @NotNull BindingTrace trace,
             @NotNull JetScope outerScope,
             NamespaceLike owner,
             @NotNull List<? extends JetDeclaration> declarations,
-            @NotNull JetControlFlowDataTraceFactory flowDataTraceFactory) {
+            @NotNull JetControlFlowDataTraceFactory flowDataTraceFactory,
+            boolean declaredLocally) {
         TopDownAnalysisContext context = new TopDownAnalysisContext(semanticServices, trace);
         new TypeHierarchyResolver(context).process(outerScope, owner, declarations);
         new DeclarationResolver(context).process();
@@ -72,7 +73,17 @@ public class TopDownAnalyzer {
         new OverrideResolver(context).process();
         new BodyResolver(context).resolveBehaviorDeclarationBodies();
         new DeclarationsChecker(context).process();
-        new ControlFlowAnalyzer(context, flowDataTraceFactory).process();
+        new ControlFlowAnalyzer(context, flowDataTraceFactory, declaredLocally).process();
+    }
+    
+    public static void process(
+                @NotNull JetSemanticServices semanticServices,
+                @NotNull BindingTrace trace,
+                @NotNull JetScope outerScope,
+                NamespaceLike owner,
+                @NotNull List<? extends JetDeclaration> declarations,
+                @NotNull JetControlFlowDataTraceFactory flowDataTraceFactory) {
+        process(semanticServices, trace, outerScope, owner, declarations, flowDataTraceFactory, false);
     }
 
     public static void processStandardLibraryNamespace(