diff --git a/compiler/frontend/src/org/jetbrains/jet/lang/resolve/calls/ArgumentTypeResolver.java b/compiler/frontend/src/org/jetbrains/jet/lang/resolve/calls/ArgumentTypeResolver.java
index 0bd0f687f07..8f2421009fa 100644
--- a/compiler/frontend/src/org/jetbrains/jet/lang/resolve/calls/ArgumentTypeResolver.java
+++ b/compiler/frontend/src/org/jetbrains/jet/lang/resolve/calls/ArgumentTypeResolver.java
@@ -145,29 +145,6 @@ public class ArgumentTypeResolver {
         updateResultArgumentTypeIfNotDenotable(context, argumentExpression);
     }
 
-    public <D extends CallableDescriptor> void checkTypesForFunctionArguments(CallResolutionContext<?> context, ResolvedCallImpl<D> resolvedCall) {
-        Map<ValueParameterDescriptor, ResolvedValueArgument> arguments = resolvedCall.getValueArguments();
-        for (Map.Entry<ValueParameterDescriptor, ResolvedValueArgument> entry : arguments.entrySet()) {
-            ValueParameterDescriptor valueParameterDescriptor = entry.getKey();
-            JetType varargElementType = valueParameterDescriptor.getVarargElementType();
-            JetType functionType;
-            if (varargElementType != null) {
-                functionType = varargElementType;
-            }
-            else {
-                functionType = valueParameterDescriptor.getType();
-            }
-            ResolvedValueArgument valueArgument = entry.getValue();
-            List<ValueArgument> valueArguments = valueArgument.getArguments();
-            for (ValueArgument argument : valueArguments) {
-                JetExpression expression = argument.getArgumentExpression();
-                if (expression instanceof JetFunctionLiteralExpression) {
-                    expressionTypingServices.getType(context.scope, expression, functionType, context.dataFlowInfo, context.trace);
-                }
-            }
-        }
-    }
-
     public static boolean isFunctionLiteralArgument(@NotNull JetExpression expression) {
         return getFunctionLiteralArgumentIfAny(expression) != null;
     }
diff --git a/compiler/frontend/src/org/jetbrains/jet/lang/resolve/calls/CallResolver.java b/compiler/frontend/src/org/jetbrains/jet/lang/resolve/calls/CallResolver.java
index fec19e6c37b..0bfd3a775e7 100644
--- a/compiler/frontend/src/org/jetbrains/jet/lang/resolve/calls/CallResolver.java
+++ b/compiler/frontend/src/org/jetbrains/jet/lang/resolve/calls/CallResolver.java
@@ -451,8 +451,6 @@ public class CallResolver {
                 if (results.isSuccess()) {
                     debugInfo.set(ResolutionDebugInfo.RESULT, results.getResultingCall());
                 }
-
-                resolveFunctionArguments(context, results);
                 return results;
             }
             if (results.getResultCode() == INCOMPLETE_TYPE_INFERENCE) {
@@ -473,7 +471,6 @@ public class CallResolver {
 
                 debugInfo.set(ResolutionDebugInfo.RESULT, resultsForFirstNonemptyCandidateSet.getResultingCall());
             }
-            resolveFunctionArguments(context, resultsForFirstNonemptyCandidateSet);
         }
         else {
             context.trace.report(UNRESOLVED_REFERENCE.on(reference, reference));
@@ -482,20 +479,7 @@ public class CallResolver {
         return resultsForFirstNonemptyCandidateSet != null ? resultsForFirstNonemptyCandidateSet : OverloadResolutionResultsImpl.<F>nameNotFound();
     }
 
-    private <D extends CallableDescriptor> OverloadResolutionResults<D> resolveFunctionArguments(
-            @NotNull BasicCallResolutionContext context,
-            @NotNull OverloadResolutionResultsImpl<D> results
-    ) {
-        if (results.isSingleResult()) {
-            argumentTypeResolver.checkTypesForFunctionArguments(context, results.getResultingCall().getCallToCompleteTypeArgumentInference());
-        }
-        else {
-            argumentTypeResolver.checkTypesForFunctionArgumentsWithNoCallee(context);
-        }
-        return results;
-    }
-
-//////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////
+    //////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////
 
     @NotNull
     private <D extends CallableDescriptor, F extends D> OverloadResolutionResultsImpl<F> performResolutionGuardedForExtraFunctionLiteralArguments(
diff --git a/compiler/testData/diagnostics/tests/inference/constraints/constraintOnFunctionLiteral.kt b/compiler/testData/diagnostics/tests/inference/constraints/constraintOnFunctionLiteral.kt
new file mode 100644
index 00000000000..a87baa5505d
--- /dev/null
+++ b/compiler/testData/diagnostics/tests/inference/constraints/constraintOnFunctionLiteral.kt
@@ -0,0 +1,11 @@
+package c
+
+import java.util.ArrayList
+
+fun Array<Int>.toIntArray(): IntArray = this.<!TYPE_INFERENCE_UPPER_BOUND_VIOLATED!>mapTo<!>(IntArray(size), {it})
+
+fun Array<Int>.toArrayList(): ArrayList<Int> = this.mapTo(ArrayList<Int>(size), {it})
+
+public inline fun <T, R, C: MutableCollection<in R>> Array<out T>.mapTo(result: C, transform : (T) -> R) : C =
+        throw Exception("$result $transform")
+
diff --git a/compiler/tests/org/jetbrains/jet/checkers/JetDiagnosticsTestGenerated.java b/compiler/tests/org/jetbrains/jet/checkers/JetDiagnosticsTestGenerated.java
index 077cf295db1..2cda468f7c8 100644
--- a/compiler/tests/org/jetbrains/jet/checkers/JetDiagnosticsTestGenerated.java
+++ b/compiler/tests/org/jetbrains/jet/checkers/JetDiagnosticsTestGenerated.java
@@ -3312,6 +3312,11 @@ public class JetDiagnosticsTestGenerated extends AbstractDiagnosticsTestWithEage
                     JetTestUtils.assertAllTestsPresentByMetadata(this.getClass(), "org.jetbrains.jet.generators.tests.GenerateTests", new File("compiler/testData/diagnostics/tests/inference/constraints"), Pattern.compile("^(.+)\\.kt$"), true);
                 }
                 
+                @TestMetadata("constraintOnFunctionLiteral.kt")
+                public void testConstraintOnFunctionLiteral() throws Exception {
+                    doTest("compiler/testData/diagnostics/tests/inference/constraints/constraintOnFunctionLiteral.kt");
+                }
+                
                 @TestMetadata("equalityConstraintOnNullableType.kt")
                 public void testEqualityConstraintOnNullableType() throws Exception {
                     doTest("compiler/testData/diagnostics/tests/inference/constraints/equalityConstraintOnNullableType.kt");