diff --git a/compiler/backend/src/org/jetbrains/jet/codegen/ClassBodyCodegen.java b/compiler/backend/src/org/jetbrains/jet/codegen/ClassBodyCodegen.java
index d16da2e54b1..36eed72bf4a 100644
--- a/compiler/backend/src/org/jetbrains/jet/codegen/ClassBodyCodegen.java
+++ b/compiler/backend/src/org/jetbrains/jet/codegen/ClassBodyCodegen.java
@@ -4,7 +4,6 @@ import com.intellij.psi.PsiElement;
 import org.jetbrains.annotations.Nullable;
 import org.jetbrains.jet.lang.descriptors.ClassDescriptor;
 import org.jetbrains.jet.lang.descriptors.DeclarationDescriptor;
-import org.jetbrains.jet.lang.descriptors.FunctionDescriptor;
 import org.jetbrains.jet.lang.descriptors.PropertyDescriptor;
 import org.jetbrains.jet.lang.psi.*;
 import org.jetbrains.jet.lang.resolve.BindingContext;
@@ -28,11 +27,11 @@ public abstract class ClassBodyCodegen {
     protected final OwnerKind kind;
     protected final ClassDescriptor descriptor;
     protected final ClassBuilder v;
-    protected final ClassContext context;
+    protected final CodegenContext context;
 
     protected final List<CodeChunk> staticInitializerChunks = new ArrayList<CodeChunk>();
 
-    public ClassBodyCodegen(JetClassOrObject aClass, ClassContext context, ClassBuilder v, GenerationState state) {
+    public ClassBodyCodegen(JetClassOrObject aClass, CodegenContext context, ClassBuilder v, GenerationState state) {
         this.state = state;
         descriptor = state.getBindingContext().get(BindingContext.CLASS, aClass);
         myClass = aClass;
diff --git a/compiler/backend/src/org/jetbrains/jet/codegen/ClassCodegen.java b/compiler/backend/src/org/jetbrains/jet/codegen/ClassCodegen.java
index ef3c7bfc6fd..3bb8e9bcc2f 100644
--- a/compiler/backend/src/org/jetbrains/jet/codegen/ClassCodegen.java
+++ b/compiler/backend/src/org/jetbrains/jet/codegen/ClassCodegen.java
@@ -2,7 +2,6 @@ package org.jetbrains.jet.codegen;
 
 import org.jetbrains.jet.lang.descriptors.ClassDescriptor;
 import org.jetbrains.jet.lang.descriptors.DeclarationDescriptor;
-import org.jetbrains.jet.lang.descriptors.FunctionDescriptor;
 import org.jetbrains.jet.lang.psi.*;
 import org.jetbrains.jet.lang.resolve.BindingContext;
 
@@ -19,12 +18,12 @@ public class ClassCodegen {
         this.state = state;
     }
 
-    public void generate(ClassContext context, JetClassOrObject aClass) {
+    public void generate(CodegenContext context, JetClassOrObject aClass) {
         GenerationState.prepareAnonymousClasses((JetElement) aClass, state.getTypeMapper());
 
         ClassDescriptor descriptor = state.getBindingContext().get(BindingContext.CLASS, aClass);
 
-        final ClassContext contextForInners = context.intoClass(null, descriptor, OwnerKind.IMPLEMENTATION);
+        final CodegenContext contextForInners = context.intoClass(descriptor, OwnerKind.IMPLEMENTATION);
         for (JetDeclaration declaration : aClass.getDeclarations()) {
             if (declaration instanceof JetClass && !(declaration instanceof JetEnumEntry)) {
                 generate(contextForInners, (JetClass) declaration);
@@ -34,17 +33,15 @@ public class ClassCodegen {
         generateImplementation(context, aClass, OwnerKind.IMPLEMENTATION, contextForInners.accessors);
     }
 
-    private void generateImplementation(ClassContext context, JetClassOrObject aClass, OwnerKind kind, HashMap<DeclarationDescriptor, DeclarationDescriptor> accessors) {
+    private void generateImplementation(CodegenContext context, JetClassOrObject aClass, OwnerKind kind, HashMap<DeclarationDescriptor, DeclarationDescriptor> accessors) {
         ClassDescriptor descriptor = state.getBindingContext().get(BindingContext.CLASS, aClass);
         ClassBuilder v = state.forClassImplementation(descriptor);
-        ClassContext classContext = context.intoClass(null, descriptor, kind);
+        CodegenContext classContext = context.intoClass(descriptor, kind);
         new ImplementationBodyCodegen(aClass, classContext, v, state).generate(accessors);
 
         if(aClass instanceof JetClass && ((JetClass)aClass).isTrait()) {
             v = state.forTraitImplementation(descriptor);
-            new TraitImplBodyCodegen(aClass, context.intoClass(null, descriptor, OwnerKind.TRAIT_IMPL), v, state).generate(null);
+            new TraitImplBodyCodegen(aClass, context.intoClass(descriptor, OwnerKind.TRAIT_IMPL), v, state).generate(null);
         }
     }
-
-
 }
diff --git a/compiler/backend/src/org/jetbrains/jet/codegen/ClassContext.java b/compiler/backend/src/org/jetbrains/jet/codegen/ClassContext.java
deleted file mode 100644
index 74e12a5228e..00000000000
--- a/compiler/backend/src/org/jetbrains/jet/codegen/ClassContext.java
+++ /dev/null
@@ -1,258 +0,0 @@
-package org.jetbrains.jet.codegen;
-
-import org.jetbrains.annotations.Nullable;
-import org.jetbrains.jet.lang.descriptors.*;
-import org.jetbrains.jet.lang.descriptors.annotations.AnnotationDescriptor;
-import org.jetbrains.jet.lang.psi.JetTypeReference;
-import org.jetbrains.jet.lang.resolve.BindingContext;
-import org.jetbrains.jet.lang.resolve.scopes.receivers.ReceiverDescriptor;
-import org.jetbrains.jet.lang.types.JetType;
-import org.objectweb.asm.Type;
-import org.objectweb.asm.commons.InstructionAdapter;
-
-import java.util.Collection;
-import java.util.Collections;
-import java.util.HashMap;
-import java.util.List;
-
-import static org.jetbrains.jet.lang.diagnostics.Errors.WRONG_GETTER_RETURN_TYPE;
-
-/*
- * @author max
- * @author alex.tkachman
- */
-public class ClassContext {
-    public static final ClassContext STATIC = new ClassContext(null, OwnerKind.NAMESPACE, null, null, null);
-    private final DeclarationDescriptor contextType;
-    private final OwnerKind contextKind;
-    private final StackValue thisExpression;
-    final ClassContext parentContext;
-    public  final FunctionOrClosureCodegen closure;
-    private boolean thisWasUsed = false;
-    
-    HashMap<JetType,Integer> typeInfoConstants;
-    HashMap<DeclarationDescriptor, DeclarationDescriptor> accessors;
-
-    public ClassContext(DeclarationDescriptor contextType, OwnerKind contextKind, StackValue thisExpression, ClassContext parentContext, FunctionOrClosureCodegen closureCodegen) {
-        this.contextType = contextType;
-        this.contextKind = contextKind;
-        this.thisExpression = thisExpression;
-        this.parentContext = parentContext;
-        closure = closureCodegen;
-    }
-
-    public DeclarationDescriptor getContextDescriptor() {
-        return contextType;
-    }
-
-    public String getNamespaceClassName() {
-        if(parentContext != STATIC)
-            return parentContext.getNamespaceClassName();
-
-        return NamespaceCodegen.getJVMClassName(contextType.getName());
-    }
-
-    public OwnerKind getContextKind() {
-        return contextKind;
-    }
-
-    public StackValue getThisExpression() {
-        if (parentContext == null) return StackValue.none();
-
-        thisWasUsed = true;
-        if (thisExpression != null) return thisExpression;
-        return parentContext.getThisExpression();
-    }
-
-    public ClassContext intoNamespace(NamespaceDescriptor descriptor) {
-        return new ClassContext(descriptor, OwnerKind.NAMESPACE, null, this, null);
-    }
-
-    public ClassContext intoClass(@Nullable FunctionOrClosureCodegen closure, ClassDescriptor descriptor, OwnerKind kind) {
-        final StackValue thisValue;
-        thisValue = StackValue.local(0, JetTypeMapper.TYPE_OBJECT);
-
-        return new ClassContext(descriptor, kind, thisValue, this, closure);
-    }
-
-    public ClassContext intoFunction(FunctionDescriptor descriptor) {
-        int thisIdx = -1;
-        if (getContextKind() != OwnerKind.NAMESPACE) {
-            thisIdx++;
-        }
-
-        final boolean hasReceiver = descriptor.getReceiverParameter().exists();
-        if (hasReceiver) {
-            thisIdx++;
-        }
-
-        return new ClassContext(descriptor, getContextKind(), hasReceiver ? StackValue.local(thisIdx, JetTypeMapper.TYPE_OBJECT) : null, this, null);
-    }
-
-    public ClassContext intoClosure(String internalClassName, ClosureCodegen closureCodegen) {
-        final Type type = enclosingClassType(closureCodegen.state.getTypeMapper());
-        StackValue outerClass = type != null
-                                ? StackValue.instanceField(type, internalClassName, "this$0")
-                                : StackValue.local(0, JetTypeMapper.TYPE_OBJECT);
-        return new ClassContext(null, OwnerKind.IMPLEMENTATION, outerClass, this, closureCodegen);
-    }
-
-    public FrameMap prepareFrame() {
-        FrameMap frameMap = new FrameMap();
-
-        if (getContextKind() != OwnerKind.NAMESPACE) {
-            frameMap.enterTemp();  // 0 slot for this
-        }
-
-        if (hasReceiver()) {
-            frameMap.enterTemp();  // Next slot for fake this
-        }
-
-        return frameMap;
-    }
-
-    private ReceiverDescriptor receiver() {
-        return contextType instanceof FunctionDescriptor ? ((FunctionDescriptor) contextType).getReceiverParameter() : ReceiverDescriptor.NO_RECEIVER;
-    }
-
-    private boolean hasReceiver() {
-        return receiver().exists();
-    }
-
-    public ClassContext getParentContext() {
-        return parentContext;
-    }
-
-    public Type jvmType(JetTypeMapper mapper) {
-        if (contextType instanceof ClassDescriptor) {
-            return mapper.jvmType((ClassDescriptor) contextType, contextKind);
-        }
-        else if (closure != null) {
-            return Type.getObjectType(closure.name);
-        }
-        else {
-            return parentContext != null ? parentContext.jvmType(mapper) : JetTypeMapper.TYPE_OBJECT;
-        }
-    }
-
-    public DeclarationDescriptor getContextClass() {
-        DeclarationDescriptor descriptor = getContextDescriptor();
-        if (descriptor == null || descriptor instanceof ClassDescriptor || descriptor instanceof NamespaceDescriptor) return descriptor;
-
-        final ClassContext parent = getParentContext();
-        return parent != null ? parent.getContextClass() : null;
-    }
-
-    public boolean isThisWasUsed() {
-        return thisWasUsed;
-    }
-
-    public StackValue lookupInContext(DeclarationDescriptor d, InstructionAdapter v) {
-        final FunctionOrClosureCodegen top = closure;
-        if (top != null) {
-            final StackValue answer = top.lookupInContext(d);
-            if (answer != null) return answer;
-
-            final StackValue thisContext = getThisExpression();
-            if(thisContext instanceof StackValue.Local) {
-            }
-            else if(thisContext instanceof StackValue.InstanceField) {
-                StackValue.InstanceField instanceField = (StackValue.InstanceField) thisContext;
-                v.getfield(instanceField.owner, instanceField.name, instanceField.type.getDescriptor());
-            }
-            else {
-                throw new UnsupportedOperationException();
-            }
-        }
-
-        return parentContext != null ? parentContext.lookupInContext(d, v) : null;
-    }
-
-    public Type enclosingClassType(JetTypeMapper mapper) {
-        DeclarationDescriptor descriptor = getContextDescriptor();
-        if (descriptor instanceof ClassDescriptor) {
-            return Type.getObjectType(mapper.jvmName((ClassDescriptor) descriptor, OwnerKind.IMPLEMENTATION));
-        }
-
-        if (descriptor instanceof NamespaceDescriptor) {
-            return null;
-        }
-
-        if (closure != null) {
-            return Type.getObjectType(closure.name);
-        }
-
-        final ClassContext parent = getParentContext();
-        return parent != null ? parent.enclosingClassType(mapper) : null;
-    }
-    
-    public int getTypeInfoConstantIndex(JetType type) {
-        if(parentContext != STATIC)
-            return parentContext.getTypeInfoConstantIndex(type);
-        
-        if(typeInfoConstants == null)
-            typeInfoConstants = new HashMap<JetType, Integer>();
-
-        Integer index = typeInfoConstants.get(type);
-        if(index == null) {
-            index = typeInfoConstants.size();
-            typeInfoConstants.put(type, index);
-        }
-        return index;
-    }
-    
-    DeclarationDescriptor getAccessor(DeclarationDescriptor descriptor) {
-        if(accessors == null) {
-            accessors = new HashMap<DeclarationDescriptor,DeclarationDescriptor>();
-        }
-        descriptor = descriptor.getOriginal();
-        DeclarationDescriptor accessor = accessors.get(descriptor);
-        if(accessor != null)
-            return accessor;
-
-        if(descriptor instanceof FunctionDescriptor) {
-            FunctionDescriptorImpl myAccessor = new FunctionDescriptorImpl(contextType,
-                                                                           Collections.<AnnotationDescriptor>emptyList(),
-                                                                           descriptor.getName() + "$bridge$" + accessors.size());
-            FunctionDescriptor fd = (FunctionDescriptor) descriptor;
-            myAccessor.initialize(fd.getReceiverParameter().exists() ? fd.getReceiverParameter().getType() : null,
-                                  fd.getExpectedThisObject(),
-                                  fd.getTypeParameters(),
-                                  fd.getValueParameters(),
-                                  fd.getReturnType(),
-                                  fd.getModality(),
-                                  fd.getVisibility());
-            accessor = myAccessor;
-        }
-        else if(descriptor instanceof PropertyDescriptor) {
-            PropertyDescriptor pd = (PropertyDescriptor) descriptor;
-            PropertyDescriptor myAccessor = new PropertyDescriptor(contextType,
-                                                                   Collections.<AnnotationDescriptor>emptyList(),
-                                                                   pd.getModality(),
-                                                                   pd.getVisibility(),
-                                                                   pd.isVar(),
-                                                                   pd.getReceiverParameter().exists() ? pd.getReceiverParameter().getType() : null,
-                                                                   pd.getExpectedThisObject(),
-                                                                   pd.getName()  + "$bridge$" + accessors.size(),
-                                                                   pd.getInType(),
-                                                                   pd.getOutType());
-            PropertyGetterDescriptor pgd = new PropertyGetterDescriptor(
-                        myAccessor, Collections.<AnnotationDescriptor>emptyList(), myAccessor.getModality(),
-                        myAccessor.getVisibility(),
-                        myAccessor.getOutType(), false, false);
-            PropertySetterDescriptor psd = new PropertySetterDescriptor(
-                        myAccessor.getModality(),
-                        myAccessor.getVisibility(),
-                        myAccessor,
-                        Collections.<AnnotationDescriptor>emptyList(),
-                        false, false);
-            myAccessor.initialize(Collections.<TypeParameterDescriptor>emptyList(), pgd, psd);
-            accessor = myAccessor;
-        }
-        else {
-            throw new UnsupportedOperationException();
-        }
-        accessors.put(descriptor, accessor);
-        return accessor;
-    }
-}
diff --git a/compiler/backend/src/org/jetbrains/jet/codegen/ClosureCodegen.java b/compiler/backend/src/org/jetbrains/jet/codegen/ClosureCodegen.java
index 9217feb4cce..6f3ec66699d 100644
--- a/compiler/backend/src/org/jetbrains/jet/codegen/ClosureCodegen.java
+++ b/compiler/backend/src/org/jetbrains/jet/codegen/ClosureCodegen.java
@@ -5,14 +5,14 @@
 package org.jetbrains.jet.codegen;
 
 import com.intellij.openapi.util.Pair;
-import org.jetbrains.jet.lang.descriptors.DeclarationDescriptor;
-import org.jetbrains.jet.lang.descriptors.FunctionDescriptor;
-import org.jetbrains.jet.lang.descriptors.ValueParameterDescriptor;
-import org.jetbrains.jet.lang.descriptors.VariableDescriptor;
+import org.jetbrains.jet.lang.descriptors.*;
+import org.jetbrains.jet.lang.descriptors.annotations.AnnotationDescriptor;
 import org.jetbrains.jet.lang.psi.JetFunctionLiteral;
 import org.jetbrains.jet.lang.psi.JetFunctionLiteralExpression;
 import org.jetbrains.jet.lang.resolve.BindingContext;
+import org.jetbrains.jet.lang.resolve.scopes.JetScope;
 import org.jetbrains.jet.lang.resolve.scopes.receivers.ReceiverDescriptor;
+import org.jetbrains.jet.lang.types.JetStandardClasses;
 import org.jetbrains.jet.lang.types.JetType;
 import org.objectweb.asm.Label;
 import org.objectweb.asm.MethodVisitor;
@@ -22,13 +22,14 @@ import org.objectweb.asm.commons.Method;
 import org.objectweb.asm.signature.SignatureWriter;
 
 import java.util.Arrays;
+import java.util.Collections;
 import java.util.List;
 
 import static org.objectweb.asm.Opcodes.*;
 
-public class ClosureCodegen extends FunctionOrClosureCodegen {
+public class ClosureCodegen extends ObjectOrClosureCodegen {
 
-    public ClosureCodegen(GenerationState state, ExpressionCodegen exprContext, ClassContext context) {
+    public ClosureCodegen(GenerationState state, ExpressionCodegen exprContext, CodegenContext context) {
         super(exprContext, context, state);
     }
 
@@ -80,7 +81,8 @@ public class ClosureCodegen extends FunctionOrClosureCodegen {
 
         generateBridge(name, funDescriptor, fun, cv);
         captureThis = generateBody(funDescriptor, cv, fun.getFunctionLiteral());
-        final Type enclosingType = context.enclosingClassType(state.getTypeMapper());
+        ClassDescriptor thisDescriptor = context.getThisDescriptor();
+        final Type enclosingType = thisDescriptor == null ? null : Type.getObjectType(thisDescriptor.getName());
         if (enclosingType == null) captureThis = false;
 
         final Method constructor = generateConstructor(funClass, captureThis, fun, funDescriptor.getReturnType());
@@ -128,10 +130,21 @@ public class ClosureCodegen extends FunctionOrClosureCodegen {
     }
 
     private boolean generateBody(FunctionDescriptor funDescriptor, ClassBuilder cv, JetFunctionLiteral body) {
-        final ClassContext closureContext = context.intoClosure(name, this);
+        int arity = funDescriptor.getValueParameters().size();
+
+        ClassDescriptorImpl function = new ClassDescriptorImpl(
+                funDescriptor,
+                Collections.<AnnotationDescriptor>emptyList(),
+                name);
+        function = function.initialize(
+                false,
+                Collections.<TypeParameterDescriptor>emptyList(),
+                Collections.singleton((funDescriptor.getReceiverParameter().exists() ? JetStandardClasses.getReceiverFunction(arity) : JetStandardClasses.getFunction(arity)).getDefaultType()), JetScope.EMPTY, Collections.<FunctionDescriptor>emptySet(), null);
+
+        final CodegenContext.ClosureContext closureContext = context.intoClosure(funDescriptor, function, name, this);
         FunctionCodegen fc = new FunctionCodegen(closureContext, cv, state);
         fc.generateMethod(body, invokeSignature(funDescriptor), funDescriptor);
-        return closureContext.isThisWasUsed();
+        return closureContext.isOuterWasUsed();
     }
 
     private void generateBridge(String className, FunctionDescriptor funDescriptor, JetFunctionLiteralExpression fun, ClassBuilder cv) {
@@ -185,7 +198,7 @@ public class ClosureCodegen extends FunctionOrClosureCodegen {
         int i = 0;
         if (captureThis) {
             i = 1;
-            argTypes[0] = context.enclosingClassType(state.getTypeMapper());
+            argTypes[0] = Type.getObjectType(context.getThisDescriptor().getName());
         }
 
         for (DeclarationDescriptor descriptor : closure.keySet()) {
diff --git a/compiler/backend/src/org/jetbrains/jet/codegen/CodegenContext.java b/compiler/backend/src/org/jetbrains/jet/codegen/CodegenContext.java
new file mode 100644
index 00000000000..49013ecafb3
--- /dev/null
+++ b/compiler/backend/src/org/jetbrains/jet/codegen/CodegenContext.java
@@ -0,0 +1,364 @@
+package org.jetbrains.jet.codegen;
+
+import org.jetbrains.annotations.NotNull;
+import org.jetbrains.annotations.Nullable;
+import org.jetbrains.jet.lang.descriptors.*;
+import org.jetbrains.jet.lang.descriptors.annotations.AnnotationDescriptor;
+import org.jetbrains.jet.lang.types.JetType;
+import org.jetbrains.jet.resolve.DescriptorRenderer;
+import org.objectweb.asm.Type;
+import org.objectweb.asm.commons.InstructionAdapter;
+
+import java.util.Collections;
+import java.util.HashMap;
+
+/*
+ * @author max
+ * @author alex.tkachman
+ */
+public abstract class CodegenContext {
+    public static final CodegenContext STATIC = new CodegenContext(null, OwnerKind.NAMESPACE, null, null) {
+        @Override
+        protected ClassDescriptor getThisDescriptor() {
+            return null;
+        }
+    };
+
+    protected static final StackValue local0 = StackValue.local(0, JetTypeMapper.TYPE_OBJECT);
+    protected static final StackValue local1 = StackValue.local(1, JetTypeMapper.TYPE_OBJECT);
+
+    private final DeclarationDescriptor contextType;
+
+    private final OwnerKind contextKind;
+    private final CodegenContext parentContext;
+    public  final ObjectOrClosureCodegen closure;
+    
+    HashMap<JetType,Integer> typeInfoConstants;
+    HashMap<DeclarationDescriptor, DeclarationDescriptor> accessors;
+
+    protected DeclarationDescriptor outerDescriptor;
+    protected DeclarationDescriptor outerReceiverDescriptor;
+
+    protected StackValue outerExpression;
+
+    protected StackValue outerReceiverExpression;
+
+    protected boolean outerWasUsed = false;
+
+    public CodegenContext(DeclarationDescriptor contextType, OwnerKind contextKind, @Nullable CodegenContext parentContext, @Nullable ObjectOrClosureCodegen closureCodegen) {
+        this.contextType = contextType;
+        this.contextKind = contextKind;
+        this.parentContext = parentContext;
+        closure = closureCodegen;
+    }
+
+    protected abstract ClassDescriptor getThisDescriptor ();
+
+    protected DeclarationDescriptor getReceiverDescriptor() {
+        return null;
+    }
+
+    protected StackValue getOuterExpression(@Nullable StackValue prefix) {
+        if(outerExpression == null)
+            throw new UnsupportedOperationException();
+
+        outerWasUsed = true;
+        return prefix != null ? StackValue.composed(prefix, outerExpression) : outerExpression;
+    }
+
+    public DeclarationDescriptor getContextDescriptor() {
+        return contextType;
+    }
+
+    public String getNamespaceClassName() {
+        if(parentContext != STATIC)
+            return parentContext.getNamespaceClassName();
+
+        return NamespaceCodegen.getJVMClassName(contextType.getName());
+    }
+
+    public OwnerKind getContextKind() {
+        return contextKind;
+    }
+
+    public CodegenContext intoNamespace(NamespaceDescriptor descriptor) {
+        return new NamespaceContext(descriptor, this);
+    }
+
+    public CodegenContext intoClass(ClassDescriptor descriptor, OwnerKind kind) {
+        return new ClassContext(descriptor, kind, this);
+    }
+
+    public CodegenContext intoAnonymousClass(@NotNull ObjectOrClosureCodegen closure, ClassDescriptor descriptor, OwnerKind kind) {
+        return new AnonymousClassContext(descriptor, kind, this, closure);
+    }
+
+    public MethodContext intoFunction(FunctionDescriptor descriptor) {
+        return new MethodContext(descriptor, getContextKind(), this);
+    }
+
+    public ConstructorContext intoConstructor(ConstructorDescriptor descriptor) {
+        if(descriptor == null) {
+            descriptor = new ConstructorDescriptorImpl(getThisDescriptor(), Collections.<AnnotationDescriptor>emptyList(), true)
+                    .initialize(Collections.<TypeParameterDescriptor>emptyList(), Collections.<ValueParameterDescriptor>emptyList(), Modality.OPEN, Visibility.PUBLIC);
+        }
+        return new ConstructorContext(descriptor, getContextKind(), this);
+    }
+
+    public ClosureContext intoClosure(FunctionDescriptor funDescriptor, ClassDescriptor classDescriptor, String internalClassName, ClosureCodegen closureCodegen) {
+        return new ClosureContext(funDescriptor, classDescriptor, this, closureCodegen, internalClassName);
+    }
+
+    public FrameMap prepareFrame() {
+        FrameMap frameMap = new FrameMap();
+
+        if (getContextKind() != OwnerKind.NAMESPACE) {
+            frameMap.enterTemp();  // 0 slot for this
+        }
+
+        if (getReceiverDescriptor() != null) {
+            frameMap.enterTemp();  // Next slot for fake this
+        }
+
+        return frameMap;
+    }
+
+    public CodegenContext getParentContext() {
+        return parentContext;
+    }
+
+    public Type jvmType(JetTypeMapper mapper) {
+        if (contextType instanceof ClassDescriptor) {
+            return mapper.jvmType((ClassDescriptor) contextType, contextKind);
+        }
+        else if (closure != null) {
+            return Type.getObjectType(closure.name);
+        }
+        else {
+            return parentContext != null ? parentContext.jvmType(mapper) : JetTypeMapper.TYPE_OBJECT;
+        }
+    }
+
+    public StackValue lookupInContext(DeclarationDescriptor d, InstructionAdapter v) {
+        final ObjectOrClosureCodegen top = closure;
+        if (top != null) {
+            final StackValue answer = top.lookupInContext(d);
+            if (answer != null) return answer;
+
+            getOuterExpression(null).put(JetTypeMapper.TYPE_OBJECT, v);
+        }
+
+        return parentContext != null ? parentContext.lookupInContext(d, v) : null;
+    }
+
+    public Type enclosingClassType() {
+        CodegenContext cur = getParentContext();
+        while(cur != null && !(cur.getContextDescriptor() instanceof ClassDescriptor))
+            cur = cur.getParentContext();
+
+        return cur == null ? null : Type.getObjectType(cur.getContextDescriptor().getName());
+    }
+    
+    public int getTypeInfoConstantIndex(JetType type) {
+        if(parentContext != STATIC)
+            return parentContext.getTypeInfoConstantIndex(type);
+        
+        if(typeInfoConstants == null)
+            typeInfoConstants = new HashMap<JetType, Integer>();
+
+        Integer index = typeInfoConstants.get(type);
+        if(index == null) {
+            index = typeInfoConstants.size();
+            typeInfoConstants.put(type, index);
+        }
+        return index;
+    }
+    
+    DeclarationDescriptor getAccessor(DeclarationDescriptor descriptor) {
+        if(accessors == null) {
+            accessors = new HashMap<DeclarationDescriptor,DeclarationDescriptor>();
+        }
+        descriptor = descriptor.getOriginal();
+        DeclarationDescriptor accessor = accessors.get(descriptor);
+        if(accessor != null)
+            return accessor;
+
+        if(descriptor instanceof FunctionDescriptor) {
+            FunctionDescriptorImpl myAccessor = new FunctionDescriptorImpl(contextType,
+                                                                           Collections.<AnnotationDescriptor>emptyList(),
+                                                                           descriptor.getName() + "$bridge$" + accessors.size());
+            FunctionDescriptor fd = (FunctionDescriptor) descriptor;
+            myAccessor.initialize(fd.getReceiverParameter().exists() ? fd.getReceiverParameter().getType() : null,
+                                  fd.getExpectedThisObject(),
+                                  fd.getTypeParameters(),
+                                  fd.getValueParameters(),
+                                  fd.getReturnType(),
+                                  fd.getModality(),
+                                  fd.getVisibility());
+            accessor = myAccessor;
+        }
+        else if(descriptor instanceof PropertyDescriptor) {
+            PropertyDescriptor pd = (PropertyDescriptor) descriptor;
+            PropertyDescriptor myAccessor = new PropertyDescriptor(contextType,
+                                                                   Collections.<AnnotationDescriptor>emptyList(),
+                                                                   pd.getModality(),
+                                                                   pd.getVisibility(),
+                                                                   pd.isVar(),
+                                                                   pd.getReceiverParameter().exists() ? pd.getReceiverParameter().getType() : null,
+                                                                   pd.getExpectedThisObject(),
+                                                                   pd.getName()  + "$bridge$" + accessors.size(),
+                                                                   pd.getInType(),
+                                                                   pd.getOutType());
+            PropertyGetterDescriptor pgd = new PropertyGetterDescriptor(
+                        myAccessor, Collections.<AnnotationDescriptor>emptyList(), myAccessor.getModality(),
+                        myAccessor.getVisibility(),
+                        myAccessor.getOutType(), false, false);
+            PropertySetterDescriptor psd = new PropertySetterDescriptor(
+                        myAccessor.getModality(),
+                        myAccessor.getVisibility(),
+                        myAccessor,
+                        Collections.<AnnotationDescriptor>emptyList(),
+                        false, false);
+            myAccessor.initialize(Collections.<TypeParameterDescriptor>emptyList(), pgd, psd);
+            accessor = myAccessor;
+        }
+        else {
+            throw new UnsupportedOperationException();
+        }
+        accessors.put(descriptor, accessor);
+        return accessor;
+    }
+
+    public boolean isOuterWasUsed() {
+        return outerWasUsed;
+    }
+
+    public StackValue getReceiverExpression() {
+        assert getReceiverDescriptor() != null;
+        return getThisDescriptor() != null ? local1 : local0;
+    }
+
+    public StackValue getThisExpression() {
+        assert getThisDescriptor() != null;
+        return local0;
+    }
+
+    public abstract static class FunctionContext extends CodegenContext {
+        final DeclarationDescriptor receiverDescriptor;
+
+        public FunctionContext(FunctionDescriptor contextType, OwnerKind contextKind, CodegenContext parentContext, @Nullable ObjectOrClosureCodegen closureCodegen) {
+            super(contextType, contextKind, parentContext, closureCodegen);
+            receiverDescriptor = contextType.getReceiverParameter().exists() ? contextType.getReceiverParameter().getType().getConstructor().getDeclarationDescriptor() : null;
+        }
+
+        @Override
+        protected DeclarationDescriptor getReceiverDescriptor() {
+            return receiverDescriptor;
+        }
+    }
+
+    public static class MethodContext  extends FunctionContext {
+        public MethodContext(FunctionDescriptor contextType, OwnerKind contextKind, CodegenContext parentContext) {
+            super(contextType, contextKind, parentContext, null);
+        }
+
+        @Override
+        protected ClassDescriptor getThisDescriptor() {
+            return getParentContext().getThisDescriptor();
+        }
+
+        public StackValue lookupInContext(DeclarationDescriptor d, InstructionAdapter v) {
+            return getParentContext().lookupInContext(d, v);
+        }
+
+        public Type enclosingClassType() {
+            return getParentContext().enclosingClassType();
+        }
+
+        protected StackValue getOuterExpression(StackValue prefix) {
+            return getParentContext().getOuterExpression(prefix);
+        }
+    }
+
+    public static class ConstructorContext extends MethodContext {
+        public ConstructorContext(ConstructorDescriptor contextType, OwnerKind kind, CodegenContext parent) {
+            super(contextType, kind, parent);
+
+            final Type type = enclosingClassType();
+            outerExpression = type != null
+                        ? local1
+                        : null;
+        }
+
+        protected StackValue getOuterExpression(StackValue prefix) {
+            return outerExpression;
+        }
+    }
+
+    public static class ClassContext extends CodegenContext {
+        public ClassContext(ClassDescriptor contextType, OwnerKind contextKind, CodegenContext parentContext) {
+            super(contextType, contextKind, parentContext, null);
+
+            final Type type = enclosingClassType();
+            outerExpression = type != null
+                        ? StackValue.field(type, DescriptorRenderer.getFQName(contextType).replace('.', '/'), "this$0", false)
+                        : null;
+        }
+
+        @Override
+        protected ClassDescriptor getThisDescriptor() {
+            return (ClassDescriptor) getContextDescriptor();
+        }
+    }
+
+    public static class AnonymousClassContext extends CodegenContext {
+        public AnonymousClassContext(ClassDescriptor contextType, OwnerKind contextKind, CodegenContext parentContext, @NotNull ObjectOrClosureCodegen closure) {
+            super(contextType, contextKind, parentContext, closure);
+            
+            final Type type = enclosingClassType();
+            outerExpression = type != null
+                        ? StackValue.field(type, closure.state.getTypeMapper().jvmName(contextType, OwnerKind.IMPLEMENTATION), "this$0", false)
+                        : null;
+        }
+
+        @Override
+        protected ClassDescriptor getThisDescriptor() {
+            return (ClassDescriptor) getContextDescriptor();
+        }
+    }
+
+    public static class ClosureContext extends FunctionContext {
+        private ClassDescriptor classDescriptor;
+
+        public ClosureContext(FunctionDescriptor contextType, ClassDescriptor classDescriptor, CodegenContext parentContext, @NotNull ObjectOrClosureCodegen closureCodegen, String internalClassName) {
+            super(contextType, OwnerKind.IMPLEMENTATION, parentContext, closureCodegen);
+            this.classDescriptor = classDescriptor;
+
+            final Type type = enclosingClassType();
+            outerExpression = type != null
+                        ? StackValue.field(type, internalClassName, "this$0", false)
+                        : null;
+        }
+
+        @Override
+        protected ClassDescriptor getThisDescriptor() {
+            return classDescriptor;
+        }
+
+        @Override
+        public DeclarationDescriptor getContextDescriptor() {
+            return classDescriptor;
+        }
+    }
+
+    public static class NamespaceContext extends CodegenContext {
+        public NamespaceContext(NamespaceDescriptor contextType, CodegenContext parent) {
+            super(contextType, OwnerKind.NAMESPACE, parent, null);
+        }
+
+        @Override
+        protected ClassDescriptor getThisDescriptor() {
+            return null;
+        }
+    }
+}
diff --git a/compiler/backend/src/org/jetbrains/jet/codegen/ExpressionCodegen.java b/compiler/backend/src/org/jetbrains/jet/codegen/ExpressionCodegen.java
index e1417c28c82..45682099f46 100644
--- a/compiler/backend/src/org/jetbrains/jet/codegen/ExpressionCodegen.java
+++ b/compiler/backend/src/org/jetbrains/jet/codegen/ExpressionCodegen.java
@@ -51,7 +51,7 @@ public class ExpressionCodegen extends JetVisitor<StackValue, StackValue> {
 
     private int myLastLineNumber = -1;
 
-    private final InstructionAdapter v;
+    final InstructionAdapter v;
     private final FrameMap myFrameMap;
     private final JetTypeMapper typeMapper;
 
@@ -60,13 +60,13 @@ public class ExpressionCodegen extends JetVisitor<StackValue, StackValue> {
 
     private final BindingContext bindingContext;
     private final Map<TypeParameterDescriptor, StackValue> typeParameterExpressions = new HashMap<TypeParameterDescriptor, StackValue>();
-    private final ClassContext context;
+    private final CodegenContext context;
     private final IntrinsicMethods intrinsics;
 
     public ExpressionCodegen(MethodVisitor v,
                              FrameMap myMap,
                              Type returnType,
-                             ClassContext context,
+                             CodegenContext context,
                              GenerationState state) {
         this.myFrameMap = myMap;
         this.typeMapper = state.getTypeMapper();
@@ -140,7 +140,7 @@ public class ExpressionCodegen extends JetVisitor<StackValue, StackValue> {
 //            return generateThisOrOuter((ClassDescriptor) descriptor);
 //        }
 //        else {
-//            return thisExpression();
+//            return local0();
 //        }
         return StackValue.none();
     }
@@ -333,10 +333,6 @@ public class ExpressionCodegen extends JetVisitor<StackValue, StackValue> {
         return context.getContextKind();
     }
 
-    private StackValue thisExpression() {
-        return context.getThisExpression();
-    }
-
     private abstract class ForLoopGenerator {
         protected JetForExpression expression;
         protected Type loopRangeType;
@@ -601,7 +597,7 @@ public class ExpressionCodegen extends JetVisitor<StackValue, StackValue> {
 
     @Override
     public StackValue visitObjectLiteralExpression(JetObjectLiteralExpression expression, StackValue receiver) {
-        FunctionOrClosureCodegen closureCodegen = new FunctionOrClosureCodegen(this, context, state);
+        ObjectOrClosureCodegen closureCodegen = new ObjectOrClosureCodegen(this, context, state);
         GeneratedAnonymousClassDescriptor closure = state.generateObjectLiteral(expression, closureCodegen);
         Type type = Type.getObjectType(closure.getClassname());
         v.anew(type);
@@ -888,7 +884,7 @@ public class ExpressionCodegen extends JetVisitor<StackValue, StackValue> {
         String owner;
 
         boolean isInterface;
-        boolean isInsideClass = containingDeclaration == context.getContextClass();
+        boolean isInsideClass = containingDeclaration == context.getThisDescriptor();
         if (isInsideClass || isStatic) {
             owner = typeMapper.getOwner(functionDescriptor, contextKind());
             isInterface = false;
@@ -915,10 +911,12 @@ public class ExpressionCodegen extends JetVisitor<StackValue, StackValue> {
     public StackValue intermediateValueForProperty(PropertyDescriptor propertyDescriptor, final boolean forceField, @Nullable JetSuperExpression superExpression) {
         boolean isSuper = superExpression != null;
 
-        DeclarationDescriptor containingDeclaration = propertyDescriptor.getContainingDeclaration();
+        DeclarationDescriptor containingDeclaration = propertyDescriptor.getContainingDeclaration().getOriginal();
         boolean isStatic = containingDeclaration instanceof NamespaceDescriptorImpl;
         propertyDescriptor = propertyDescriptor.getOriginal();
-        boolean isInsideClass = containingDeclaration == context.getContextClass() && contextKind() != OwnerKind.TRAIT_IMPL;
+        boolean isInsideClass = ((containingDeclaration == context.getThisDescriptor()) ||
+                                 (context.getParentContext() instanceof CodegenContext.NamespaceContext) && context.getParentContext().getContextDescriptor() == containingDeclaration)
+                                && contextKind() != OwnerKind.TRAIT_IMPL;
         Method getter;
         Method setter;
         if (forceField) {
@@ -935,8 +933,8 @@ public class ExpressionCodegen extends JetVisitor<StackValue, StackValue> {
                     PsiElement enclosingElement = bindingContext.get(BindingContext.LABEL_TARGET, superExpression.getTargetLabel());
                     ClassDescriptor enclosed = (ClassDescriptor) bindingContext.get(BindingContext.DECLARATION_TO_DESCRIPTOR, enclosingElement);
                     if(!CodegenUtil.isInterface(propertyDescriptor.getContainingDeclaration())) {
-                        if(enclosed != null && enclosed != context.getContextClass()) {
-                            ClassContext c = context;
+                        if(enclosed != null && enclosed != context.getThisDescriptor()) {
+                            CodegenContext c = context;
                             while(c.getContextDescriptor() != enclosed) {
                                 c = c.getParentContext();
                             }
@@ -1002,12 +1000,12 @@ public class ExpressionCodegen extends JetVisitor<StackValue, StackValue> {
                 PsiElement enclosingElement = bindingContext.get(BindingContext.LABEL_TARGET, superExpression.getTargetLabel());
                 ClassDescriptor enclosed = (ClassDescriptor) bindingContext.get(BindingContext.DECLARATION_TO_DESCRIPTOR, enclosingElement);
                 if(!CodegenUtil.isInterface(fd.getContainingDeclaration())) {
-                    if(enclosed != null && enclosed != context.getContextClass()) {
-                        ClassContext c = context;
+                    if(enclosed != null && enclosed != context.getThisDescriptor()) {
+                        CodegenContext c = context;
                         while(c.getContextDescriptor() != enclosed) {
                             c = c.getParentContext();
                         }
-                        fd = c.getAccessor((FunctionDescriptor) fd);
+                        fd = c.getAccessor(fd);
                         superCall = false;
                     }
                 }
@@ -1150,41 +1148,31 @@ public class ExpressionCodegen extends JetVisitor<StackValue, StackValue> {
     }
 
     public StackValue generateThisOrOuter(ClassDescriptor calleeContainingClass) {
-        boolean thisDone = false;
-        StackValue result = null;
+        CodegenContext cur = context;
+        if(cur.getReceiverDescriptor() == calleeContainingClass) {
+            return cur.getReceiverExpression();
+        }
 
-        ClassContext cur = context;
-        while (true) {
-            ClassContext parentContext = cur.getParentContext();
-            if (parentContext == null) break;
+        StackValue result = StackValue.local(0, JetTypeMapper.TYPE_OBJECT);
+        while (cur != null) {
+            if(cur instanceof CodegenContext.MethodContext && !(cur instanceof CodegenContext.ConstructorContext))
+                cur = cur.getParentContext();
 
-            final DeclarationDescriptor curContextType = cur.getContextDescriptor();
-            if (curContextType instanceof ClassDescriptor) {
-                if (isSubclass((ClassDescriptor) curContextType, calleeContainingClass)) break;
-
-                final StackValue outer;
-                if (!thisDone && myFrameMap instanceof ConstructorFrameMap) {
-                    outer = StackValue.local(((ConstructorFrameMap) myFrameMap).getOuterThisIndex(), JetTypeMapper.TYPE_OBJECT);
-                }
-                else {
-                    thisToStack();
-                    outer = StackValue.field(parentContext.jvmType(typeMapper),
-                                             cur.jvmType(typeMapper).getInternalName(),
-                                             "this$0",
-                                             false);
-                }
-
-                thisDone = true;
-                result = outer;
+            if (isSubclass(cur.getThisDescriptor(), calleeContainingClass)) {
+                Type type = typeMapper.mapType(calleeContainingClass.getDefaultType());
+                result.put(JetTypeMapper.TYPE_OBJECT, v);
+                return StackValue.onStack(type);
             }
 
-            cur = parentContext;
-        }
+            result = cur.getOuterExpression(result);
 
-        if (!thisDone) {
-            return thisExpression();
+            if(cur instanceof CodegenContext.ConstructorContext) {
+                cur = cur.getParentContext();
+            }
+            cur = cur.getParentContext();
         }
-        return result;
+        
+        throw new UnsupportedOperationException();
     }
 
     private static boolean isReceiver(PsiElement expression) {
@@ -2082,15 +2070,15 @@ public class ExpressionCodegen extends JetVisitor<StackValue, StackValue> {
             return generateThisOrOuter((ClassDescriptor) descriptor);
         }
         else {
-            // estension function or ???
-            return thisExpression();
+            if(descriptor instanceof FunctionDescriptor) {
+                FunctionDescriptor functionDescriptor = (FunctionDescriptor) descriptor;
+                Type type = typeMapper.mapType(functionDescriptor.getReceiverParameter().getType());
+                return StackValue.local(descriptor.getContainingDeclaration() instanceof NamespaceDescriptor ? 0 : 1, type);
+            }
+            throw new UnsupportedOperationException();
         }
     }
 
-    public void thisToStack() {
-        thisExpression().put(JetTypeMapper.TYPE_OBJECT, v);
-    }
-
     @Override
     public StackValue visitTryExpression(JetTryExpression expression, StackValue receiver) {
         Label tryStart = new Label();
@@ -2374,13 +2362,13 @@ public class ExpressionCodegen extends JetVisitor<StackValue, StackValue> {
             return;
         }
         DeclarationDescriptor containingDeclaration = typeParameterDescriptor.getContainingDeclaration();
-        if (context.getContextClass() instanceof ClassDescriptor) {
-            ClassDescriptor descriptor = (ClassDescriptor) context.getContextClass();
+        if (context.getThisDescriptor() instanceof ClassDescriptor) {
+            ClassDescriptor descriptor = (ClassDescriptor) context.getThisDescriptor();
             assert containingDeclaration != null;
             JetType defaultType = ((ClassDescriptor)containingDeclaration).getDefaultType();
             Type ownerType = typeMapper.mapType(defaultType);
             ownerType = JetTypeMapper.boxType(ownerType);
-            if (containingDeclaration == context.getContextClass()) {
+            if (containingDeclaration == context.getThisDescriptor()) {
                 if(!CodegenUtil.isInterface(descriptor)) {
                     if (CodegenUtil.hasTypeInfoField(defaultType)) {
                         v.load(0, JetTypeMapper.TYPE_OBJECT);
diff --git a/compiler/backend/src/org/jetbrains/jet/codegen/FunctionCodegen.java b/compiler/backend/src/org/jetbrains/jet/codegen/FunctionCodegen.java
index 36520f2170b..b2fae930c34 100644
--- a/compiler/backend/src/org/jetbrains/jet/codegen/FunctionCodegen.java
+++ b/compiler/backend/src/org/jetbrains/jet/codegen/FunctionCodegen.java
@@ -22,11 +22,11 @@ import static org.objectweb.asm.Opcodes.*;
  * @author alex.tkachman
  */
 public class FunctionCodegen {
-    private final ClassContext owner;
+    private final CodegenContext owner;
     private final ClassBuilder v;
     private final GenerationState state;
 
-    public FunctionCodegen(ClassContext owner, ClassBuilder v, GenerationState state) {
+    public FunctionCodegen(CodegenContext owner, ClassBuilder v, GenerationState state) {
         this.owner = owner;
         this.v = v;
         this.state = state;
@@ -40,7 +40,7 @@ public class FunctionCodegen {
     }
 
     public void generateMethod(JetDeclarationWithBody f, Method jvmMethod, FunctionDescriptor functionDescriptor) {
-        ClassContext funContext = owner.intoFunction(functionDescriptor);
+        CodegenContext.MethodContext funContext = owner.intoFunction(functionDescriptor);
 
         final JetExpression bodyExpression = f.getBodyExpression();
         generatedMethod(bodyExpression, jvmMethod, funContext, functionDescriptor, f);
@@ -48,7 +48,7 @@ public class FunctionCodegen {
 
     private void generatedMethod(JetExpression bodyExpressions,
                                  Method jvmSignature,
-                                 ClassContext context,
+                                 CodegenContext.MethodContext context,
                                  FunctionDescriptor functionDescriptor, JetDeclarationWithBody fun)
     {
         List<ValueParameterDescriptor> paramDescrs = functionDescriptor.getValueParameters();
@@ -67,9 +67,8 @@ public class FunctionCodegen {
             if (isAbstract) flags |= ACC_ABSTRACT;
 
             final MethodVisitor mv = v.newMethod(fun, flags, jvmSignature.getName(), jvmSignature.getDescriptor(), null, null);
-            boolean hasReceiver = functionDescriptor.getReceiverParameter().exists();
             if(kind != OwnerKind.TRAIT_IMPL) {
-                int start = hasReceiver ? 1 : 0;
+                int start = functionDescriptor.getReceiverParameter().exists() ? 1 : 0;
                 for(int i = 0; i != paramDescrs.size(); ++i) {
                     AnnotationVisitor annotationVisitor = mv.visitParameterAnnotation(i + start, "jet/typeinfo/JetParameterName", true);
                     annotationVisitor.visit("value", paramDescrs.get(i).getName());
@@ -78,16 +77,12 @@ public class FunctionCodegen {
             }
             if (!isAbstract) {
                 mv.visitCode();
-                Label methodStart = new Label();
-                mv.visitLabel(methodStart);
-
                 FrameMap frameMap = context.prepareFrame();
 
                 ExpressionCodegen codegen = new ExpressionCodegen(mv, frameMap, jvmSignature.getReturnType(), context, state);
 
                 Type[] argTypes = jvmSignature.getArgumentTypes();
-                int receiverSize = !hasReceiver ? 0 : state.getTypeMapper().mapType(functionDescriptor.getReceiverParameter().getType()).getSize();
-                int add = hasReceiver ? 1 : 0;
+                int add = functionDescriptor.getReceiverParameter().exists() ? state.getTypeMapper().mapType(functionDescriptor.getReceiverParameter().getType()).getSize() : 0;
                 for (int i = 0; i < paramDescrs.size(); i++) {
                     ValueParameterDescriptor parameter = paramDescrs.get(i);
                     frameMap.enter(parameter, argTypes[i+add].getSize());
@@ -128,18 +123,8 @@ public class FunctionCodegen {
 
                     codegen.returnExpression(bodyExpressions);
                 }
-
-                Label methodEnd = new Label();
-                mv.visitLabel(methodEnd);
-                int index = ((flags & ACC_STATIC) != 0 ? 0 : 1) + receiverSize;
-                for (int i = 0; i < paramDescrs.size(); i++) {
-                    ValueParameterDescriptor parameter = paramDescrs.get(i);
-                    mv.visitLocalVariable(parameter.getName(), state.getTypeMapper().mapType(parameter.getOutType()).getDescriptor(), null, methodStart, methodEnd, index);
-                    index +=  argTypes[i+add].getSize();
-                }
-
                 try {
-                    mv.visitMaxs(0, 0);
+                mv.visitMaxs(0, 0);
                 }
                 catch (Throwable t) {
                     System.out.println(t);
@@ -153,7 +138,7 @@ public class FunctionCodegen {
         generateDefaultIfNeeded(context, state, v, jvmSignature, functionDescriptor, kind);
     }
 
-    static void generateBridgeIfNeeded(ClassContext owner, GenerationState state, ClassBuilder v, Method jvmSignature, FunctionDescriptor functionDescriptor, OwnerKind kind) {
+    static void generateBridgeIfNeeded(CodegenContext owner, GenerationState state, ClassBuilder v, Method jvmSignature, FunctionDescriptor functionDescriptor, OwnerKind kind) {
         Set<? extends FunctionDescriptor> overriddenFunctions = functionDescriptor.getOverriddenDescriptors();
         if(kind != OwnerKind.TRAIT_IMPL) {
             for (FunctionDescriptor overriddenFunction : overriddenFunctions) {
@@ -164,8 +149,8 @@ public class FunctionCodegen {
         }
     }
 
-    static void generateDefaultIfNeeded(ClassContext owner, GenerationState state, ClassBuilder v, Method jvmSignature, FunctionDescriptor functionDescriptor, OwnerKind kind) {
-        DeclarationDescriptor contextClass = owner.getContextClass();
+    static void generateDefaultIfNeeded(CodegenContext.MethodContext owner, GenerationState state, ClassBuilder v, Method jvmSignature, FunctionDescriptor functionDescriptor, OwnerKind kind) {
+        DeclarationDescriptor contextClass = ((FunctionDescriptor)owner.getContextDescriptor()).getContainingDeclaration();
 
         if(kind != OwnerKind.TRAIT_IMPL) {
             // we don't generate defaults for traits but do for traitImpl
@@ -307,7 +292,7 @@ public class FunctionCodegen {
         }
     }
 
-    private static void checkOverride(ClassContext owner, GenerationState state, ClassBuilder v, Method jvmSignature, FunctionDescriptor functionDescriptor, FunctionDescriptor overriddenFunction) {
+    private static void checkOverride(CodegenContext owner, GenerationState state, ClassBuilder v, Method jvmSignature, FunctionDescriptor functionDescriptor, FunctionDescriptor overriddenFunction) {
         Type type1 = state.getTypeMapper().mapType(overriddenFunction.getOriginal().getReturnType());
         Type type2 = state.getTypeMapper().mapType(functionDescriptor.getReturnType());
         if(!type1.equals(type2)) {
diff --git a/compiler/backend/src/org/jetbrains/jet/codegen/GenerationState.java b/compiler/backend/src/org/jetbrains/jet/codegen/GenerationState.java
index a517e32fe52..7b9ddd28fab 100644
--- a/compiler/backend/src/org/jetbrains/jet/codegen/GenerationState.java
+++ b/compiler/backend/src/org/jetbrains/jet/codegen/GenerationState.java
@@ -114,13 +114,13 @@ public class GenerationState {
         }
     }
 
-    public GeneratedAnonymousClassDescriptor generateObjectLiteral(JetObjectLiteralExpression literal, FunctionOrClosureCodegen closure) {
+    public GeneratedAnonymousClassDescriptor generateObjectLiteral(JetObjectLiteralExpression literal, ObjectOrClosureCodegen closure) {
         JetObjectDeclaration objectDeclaration = literal.getObjectDeclaration();
         Pair<String, ClassBuilder> nameAndVisitor = forAnonymousSubclass(objectDeclaration);
 
         closure.cv = nameAndVisitor.getSecond();
         closure.name = nameAndVisitor.getFirst();
-        final ClassContext objectContext = closure.context.intoClass(closure, getBindingContext().get(BindingContext.CLASS, objectDeclaration), OwnerKind.IMPLEMENTATION);
+        final CodegenContext objectContext = closure.context.intoAnonymousClass(closure, getBindingContext().get(BindingContext.CLASS, objectDeclaration), OwnerKind.IMPLEMENTATION);
 
         new ImplementationBodyCodegen(objectDeclaration, objectContext, nameAndVisitor.getSecond(), this).generate(null);
 
diff --git a/compiler/backend/src/org/jetbrains/jet/codegen/ImplementationBodyCodegen.java b/compiler/backend/src/org/jetbrains/jet/codegen/ImplementationBodyCodegen.java
index 3b49f22f643..660aaa8206b 100644
--- a/compiler/backend/src/org/jetbrains/jet/codegen/ImplementationBodyCodegen.java
+++ b/compiler/backend/src/org/jetbrains/jet/codegen/ImplementationBodyCodegen.java
@@ -29,7 +29,7 @@ public class ImplementationBodyCodegen extends ClassBodyCodegen {
     private JetDelegationSpecifier superCall;
     private String superClass = "java/lang/Object";
 
-    public ImplementationBodyCodegen(JetClassOrObject aClass, ClassContext context, ClassBuilder v, GenerationState state) {
+    public ImplementationBodyCodegen(JetClassOrObject aClass, CodegenContext context, ClassBuilder v, GenerationState state) {
         super(aClass, context, v, state);
     }
 
@@ -290,6 +290,8 @@ public class ImplementationBodyCodegen extends ClassBodyCodegen {
 
         ConstructorDescriptor constructorDescriptor = state.getBindingContext().get(BindingContext.CONSTRUCTOR, myClass);
 
+        CodegenContext.ConstructorContext constructorContext = context.intoConstructor(constructorDescriptor);
+
         Method method;
         CallableMethod callableMethod;
         if (constructorDescriptor == null) {
@@ -337,7 +339,7 @@ public class ImplementationBodyCodegen extends ClassBodyCodegen {
         ConstructorFrameMap frameMap = new ConstructorFrameMap(callableMethod, constructorDescriptor, descriptor, kind);
 
         final InstructionAdapter iv = new InstructionAdapter(mv);
-        ExpressionCodegen codegen = new ExpressionCodegen(mv, frameMap, Type.VOID_TYPE, context, state);
+        ExpressionCodegen codegen = new ExpressionCodegen(mv, frameMap, Type.VOID_TYPE, constructorContext, state);
 
         for(int slot = 0; slot != frameMap.getTypeParameterCount(); ++slot) {
             if(constructorDescriptor != null)
@@ -405,7 +407,7 @@ public class ImplementationBodyCodegen extends ClassBodyCodegen {
                 iv.putfield(classname, delegateField, fieldDesc);
 
                 JetClass superClass = (JetClass) state.getBindingContext().get(BindingContext.DESCRIPTOR_TO_DECLARATION, superClassDescriptor);
-                final ClassContext delegateContext = context.intoClass(null, superClassDescriptor,
+                final CodegenContext delegateContext = context.intoClass(superClassDescriptor,
                         new OwnerKind.DelegateKind(StackValue.field(fieldType, classname, delegateField, false),
                                                    state.getTypeMapper().jvmNameForImplementation(superClassDescriptor, OwnerKind.IMPLEMENTATION)));
                 generateDelegates(superClass, delegateContext, overridden);
@@ -441,10 +443,6 @@ public class ImplementationBodyCodegen extends ClassBodyCodegen {
             }
         }
 
-        generateInitializers(codegen, iv);
-
-        generateTraitMethods(codegen);
-
         int curParam = 0;
         List<JetParameter> constructorParameters = getPrimaryConstructorParameters();
         for (JetParameter parameter : constructorParameters) {
@@ -458,6 +456,10 @@ public class ImplementationBodyCodegen extends ClassBodyCodegen {
             curParam++;
         }
 
+        generateInitializers(codegen, iv);
+
+        generateTraitMethods(codegen);
+
         mv.visitInsn(Opcodes.RETURN);
         mv.visitMaxs(0, 0);
         mv.visitEnd();
@@ -741,7 +743,7 @@ public class ImplementationBodyCodegen extends ClassBodyCodegen {
         }
     }
 
-    protected void generateDelegates(JetClass toClass, ClassContext delegateContext, Set<FunctionDescriptor> overriden) {
+    protected void generateDelegates(JetClass toClass, CodegenContext delegateContext, Set<FunctionDescriptor> overriden) {
         final FunctionCodegen functionCodegen = new FunctionCodegen(delegateContext, v, state);
         final PropertyCodegen propertyCodegen = new PropertyCodegen(delegateContext, v, functionCodegen, state);
 
diff --git a/compiler/backend/src/org/jetbrains/jet/codegen/NamespaceCodegen.java b/compiler/backend/src/org/jetbrains/jet/codegen/NamespaceCodegen.java
index f0ea12f8ae3..06fcb015ad1 100644
--- a/compiler/backend/src/org/jetbrains/jet/codegen/NamespaceCodegen.java
+++ b/compiler/backend/src/org/jetbrains/jet/codegen/NamespaceCodegen.java
@@ -44,7 +44,7 @@ public class NamespaceCodegen {
     }
 
     public void generate(JetNamespace namespace) {
-        final ClassContext context = ClassContext.STATIC.intoNamespace(state.getBindingContext().get(BindingContext.NAMESPACE, namespace));
+        final CodegenContext context = CodegenContext.STATIC.intoNamespace(state.getBindingContext().get(BindingContext.NAMESPACE, namespace));
 
         final FunctionCodegen functionCodegen = new FunctionCodegen(context, v, state);
         final PropertyCodegen propertyCodegen = new PropertyCodegen(context, v, functionCodegen, state);
@@ -85,7 +85,7 @@ public class NamespaceCodegen {
         mv.visitCode();
 
         FrameMap frameMap = new FrameMap();
-        ExpressionCodegen codegen = new ExpressionCodegen(mv, frameMap, Type.VOID_TYPE, ClassContext.STATIC, state);
+        ExpressionCodegen codegen = new ExpressionCodegen(mv, frameMap, Type.VOID_TYPE, CodegenContext.STATIC, state);
 
         for (JetDeclaration declaration : namespace.getDeclarations()) {
             if (declaration instanceof JetProperty) {
@@ -103,7 +103,7 @@ public class NamespaceCodegen {
         mv.visitEnd();
     }
 
-    private void generateTypeInfoFields(JetNamespace namespace, ClassContext context) {
+    private void generateTypeInfoFields(JetNamespace namespace, CodegenContext context) {
         if(context.typeInfoConstants != null) {
             String jvmClassName = getJVMClassName(namespace.getName());
             for(Map.Entry<JetType,Integer> e : (context.typeInfoConstants != null ? context.typeInfoConstants : Collections.<JetType,Integer>emptyMap()).entrySet()) {
@@ -130,7 +130,7 @@ public class NamespaceCodegen {
         }
     }
 
-    private static void generateTypeInfo(ClassContext context, InstructionAdapter v, JetType jetType, JetTypeMapper typeMapper, JetType root) {
+    private static void generateTypeInfo(CodegenContext context, InstructionAdapter v, JetType jetType, JetTypeMapper typeMapper, JetType root) {
         String knownTypeInfo = typeMapper.isKnownTypeInfo(jetType);
         if(knownTypeInfo != null) {
             v.getstatic("jet/typeinfo/TypeInfo", knownTypeInfo, "Ljet/typeinfo/TypeInfo;");
diff --git a/compiler/backend/src/org/jetbrains/jet/codegen/FunctionOrClosureCodegen.java b/compiler/backend/src/org/jetbrains/jet/codegen/ObjectOrClosureCodegen.java
similarity index 85%
rename from compiler/backend/src/org/jetbrains/jet/codegen/FunctionOrClosureCodegen.java
rename to compiler/backend/src/org/jetbrains/jet/codegen/ObjectOrClosureCodegen.java
index 2a0bd3be23f..f2b2f2302a6 100644
--- a/compiler/backend/src/org/jetbrains/jet/codegen/FunctionOrClosureCodegen.java
+++ b/compiler/backend/src/org/jetbrains/jet/codegen/ObjectOrClosureCodegen.java
@@ -1,27 +1,30 @@
 package org.jetbrains.jet.codegen;
 
+import org.jetbrains.jet.lang.descriptors.ClassDescriptorImpl;
 import org.jetbrains.jet.lang.descriptors.DeclarationDescriptor;
 import org.jetbrains.jet.lang.descriptors.VariableDescriptor;
+import org.jetbrains.jet.lang.descriptors.annotations.AnnotationDescriptor;
 import org.objectweb.asm.Opcodes;
 import org.objectweb.asm.Type;
 
+import java.util.Collections;
 import java.util.LinkedHashMap;
 import java.util.Map;
 
 /**
  * @author alex.tkachman
  */
-public class FunctionOrClosureCodegen {
+public class ObjectOrClosureCodegen {
     protected boolean captureThis;
 
     public final GenerationState state;
     protected final ExpressionCodegen exprContext;
-    protected final ClassContext context;
+    protected final CodegenContext context;
     protected ClassBuilder cv = null;
     public String name = null;
     protected Map<DeclarationDescriptor, EnclosedValueDescriptor> closure = new LinkedHashMap<DeclarationDescriptor, EnclosedValueDescriptor>();
 
-    public FunctionOrClosureCodegen(ExpressionCodegen exprContext, ClassContext context, GenerationState state) {
+    public ObjectOrClosureCodegen(ExpressionCodegen exprContext, CodegenContext context, GenerationState state) {
         this.exprContext = exprContext;
         this.context = context;
         this.state = state;
diff --git a/compiler/backend/src/org/jetbrains/jet/codegen/PropertyCodegen.java b/compiler/backend/src/org/jetbrains/jet/codegen/PropertyCodegen.java
index ddb3f9ed8fd..278edf168be 100644
--- a/compiler/backend/src/org/jetbrains/jet/codegen/PropertyCodegen.java
+++ b/compiler/backend/src/org/jetbrains/jet/codegen/PropertyCodegen.java
@@ -24,7 +24,7 @@ public class PropertyCodegen {
     private final ClassBuilder v;
     private final OwnerKind kind;
 
-    public PropertyCodegen(ClassContext context, ClassBuilder v, FunctionCodegen functionCodegen, GenerationState state) {
+    public PropertyCodegen(CodegenContext context, ClassBuilder v, FunctionCodegen functionCodegen, GenerationState state) {
         this.v = v;
         this.functionCodegen = functionCodegen;
         this.state = state;
diff --git a/compiler/backend/src/org/jetbrains/jet/codegen/StackValue.java b/compiler/backend/src/org/jetbrains/jet/codegen/StackValue.java
index 402aee6463e..a0404d2d404 100644
--- a/compiler/backend/src/org/jetbrains/jet/codegen/StackValue.java
+++ b/compiler/backend/src/org/jetbrains/jet/codegen/StackValue.java
@@ -235,6 +235,10 @@ public abstract class StackValue {
         return new FieldForSharedVar(type, name, fieldName);
     }
 
+    public static StackValue composed(StackValue prefix, StackValue suffix) {
+        return new Composed(prefix, suffix);
+    }
+
     private static class None extends StackValue {
         public static None INSTANCE = new None();
         private None() {
@@ -790,4 +794,21 @@ public abstract class StackValue {
             v.visitFieldInsn(Opcodes.PUTFIELD, sharedTypeForType(type).getInternalName(), "ref", refType(type).getDescriptor());
         }
     }
+
+    private static class Composed extends StackValue {
+        private StackValue prefix;
+        private StackValue suffix;
+
+        public Composed(StackValue prefix, StackValue suffix) {
+            super(suffix.type);
+            this.prefix = prefix;
+            this.suffix = suffix;
+        }
+
+        @Override
+        public void put(Type type, InstructionAdapter v) {
+            prefix.put(prefix.type, v);
+            suffix.put(type, v);
+        }
+    }
 }
diff --git a/compiler/backend/src/org/jetbrains/jet/codegen/TraitImplBodyCodegen.java b/compiler/backend/src/org/jetbrains/jet/codegen/TraitImplBodyCodegen.java
index 6856689b2de..cdd5f7e3a48 100644
--- a/compiler/backend/src/org/jetbrains/jet/codegen/TraitImplBodyCodegen.java
+++ b/compiler/backend/src/org/jetbrains/jet/codegen/TraitImplBodyCodegen.java
@@ -12,7 +12,7 @@ import org.objectweb.asm.Opcodes;
 import java.util.List;
 
 public class TraitImplBodyCodegen extends ClassBodyCodegen {
-    public TraitImplBodyCodegen(JetClassOrObject aClass, ClassContext context, ClassBuilder v, GenerationState state) {
+    public TraitImplBodyCodegen(JetClassOrObject aClass, CodegenContext context, ClassBuilder v, GenerationState state) {
         super(aClass, context, v, state);
     }
 
diff --git a/compiler/testData/codegen/extensionFunctions/virtual.jet b/compiler/testData/codegen/extensionFunctions/virtual.jet
new file mode 100644
index 00000000000..18a774867ac
--- /dev/null
+++ b/compiler/testData/codegen/extensionFunctions/virtual.jet
@@ -0,0 +1,24 @@
+class Request(val path: String) {
+
+}
+
+class Handler() {
+    fun Int.times(op: fun(): Unit) {
+        for(i in 0..this)
+            op()
+    }
+
+//    fun Request.getPath() : String {
+//        val sb = java.lang.StringBuilder()
+//        10.times {
+//            sb.append(path)?.append(this)
+//        }
+//        return sb.toString() as String
+//    }
+
+    fun Request.getPath() = path
+
+    fun test(request: Request) = request.getPath()
+}
+
+fun box() : String = if(Handler().test(Request("239")) == "239") "OK" else "fail"
diff --git a/compiler/tests/org/jetbrains/jet/codegen/ExtensionFunctionsTest.java b/compiler/tests/org/jetbrains/jet/codegen/ExtensionFunctionsTest.java
index 7151adcbc12..16487d292f1 100644
--- a/compiler/tests/org/jetbrains/jet/codegen/ExtensionFunctionsTest.java
+++ b/compiler/tests/org/jetbrains/jet/codegen/ExtensionFunctionsTest.java
@@ -4,6 +4,7 @@ import java.lang.reflect.Method;
 
 /**
  * @author yole
+ * @author alex.tkachman
  */
 public class ExtensionFunctionsTest extends CodegenTestCase {
     @Override
@@ -27,4 +28,8 @@ public class ExtensionFunctionsTest extends CodegenTestCase {
     public void testGeneric() throws Exception {
         blackBoxFile("extensionFunctions/generic.jet");
     }
+
+    public void testVirtual() throws Exception {
+        blackBoxFile("extensionFunctions/virtual.jet");
+    }
 }
diff --git a/compiler/tests/org/jetbrains/jet/codegen/PropertyGenTest.java b/compiler/tests/org/jetbrains/jet/codegen/PropertyGenTest.java
index ed9beaf4e74..096bd9e1c03 100644
--- a/compiler/tests/org/jetbrains/jet/codegen/PropertyGenTest.java
+++ b/compiler/tests/org/jetbrains/jet/codegen/PropertyGenTest.java
@@ -64,6 +64,7 @@ public class PropertyGenTest extends CodegenTestCase {
 
     public void testFieldPropertyAccess() throws Exception {
         loadFile("properties/fieldPropertyAccess.jet");
+        System.out.println(generateToText());
         final Method method = generateFunction();
         assertEquals(1, method.invoke(null));
         assertEquals(2, method.invoke(null));