diff --git a/compiler/frontend/src/org/jetbrains/jet/lang/descriptors/ConstructorDescriptorImpl.java b/compiler/frontend/src/org/jetbrains/jet/lang/descriptors/ConstructorDescriptorImpl.java
index 014da666a95..8d82db88eff 100644
--- a/compiler/frontend/src/org/jetbrains/jet/lang/descriptors/ConstructorDescriptorImpl.java
+++ b/compiler/frontend/src/org/jetbrains/jet/lang/descriptors/ConstructorDescriptorImpl.java
@@ -23,8 +23,8 @@ public class ConstructorDescriptorImpl extends FunctionDescriptorImpl implements
         this.isPrimary = isPrimary;
     }
 
-    public ConstructorDescriptorImpl(@NotNull ConstructorDescriptor original, @NotNull List<AnnotationDescriptor> annotations, boolean isPrimary) {
-        super(original.getContainingDeclaration(), original, annotations, "<init>");
+    public ConstructorDescriptorImpl(@NotNull ClassDescriptor containingDeclaration, @NotNull ConstructorDescriptor original, @NotNull List<AnnotationDescriptor> annotations, boolean isPrimary) {
+        super(containingDeclaration, original, annotations, "<init>");
         this.isPrimary = isPrimary;
     }
 
@@ -85,8 +85,9 @@ public class ConstructorDescriptorImpl extends FunctionDescriptorImpl implements
     }
 
     @Override
-    protected FunctionDescriptorImpl createSubstitutedCopy() {
+    protected FunctionDescriptorImpl createSubstitutedCopy(DeclarationDescriptor newOwner) {
         return new ConstructorDescriptorImpl(
+                (ClassDescriptor) newOwner,
                 this,
                 Collections.<AnnotationDescriptor>emptyList(), // TODO
                 isPrimary);
diff --git a/compiler/frontend/src/org/jetbrains/jet/lang/descriptors/FunctionDescriptorImpl.java b/compiler/frontend/src/org/jetbrains/jet/lang/descriptors/FunctionDescriptorImpl.java
index 6f2129a2d7b..671e99bdd38 100644
--- a/compiler/frontend/src/org/jetbrains/jet/lang/descriptors/FunctionDescriptorImpl.java
+++ b/compiler/frontend/src/org/jetbrains/jet/lang/descriptors/FunctionDescriptorImpl.java
@@ -135,7 +135,12 @@ public abstract class FunctionDescriptorImpl extends DeclarationDescriptorImpl i
         if (originalSubstitutor.isEmpty()) {
             return this;
         }
-        FunctionDescriptorImpl substitutedDescriptor = createSubstitutedCopy();
+        return doSubstitute(originalSubstitutor, getContainingDeclaration(), modality);
+    }
+
+    protected FunctionDescriptor doSubstitute(TypeSubstitutor originalSubstitutor,
+            DeclarationDescriptor newOwner, Modality newModality) {
+        FunctionDescriptorImpl substitutedDescriptor = createSubstitutedCopy(newOwner);
 
         List<TypeParameterDescriptor> substitutedTypeParameters = Lists.newArrayList();
         TypeSubstitutor substitutor = DescriptorSubstitutor.substituteTypeParameters(getTypeParameters(), originalSubstitutor, substitutedDescriptor, substitutedTypeParameters);
@@ -147,7 +152,7 @@ public abstract class FunctionDescriptorImpl extends DeclarationDescriptorImpl i
                 return null;
             }
         }
-        
+
         ReceiverDescriptor substitutedExpectedThis = NO_RECEIVER;
         if (expectedThisObject.exists()) {
             JetType substitutedType = substitutor.substitute(expectedThisObject.getType(), Variance.INVARIANT);
@@ -173,7 +178,7 @@ public abstract class FunctionDescriptorImpl extends DeclarationDescriptorImpl i
                 substitutedTypeParameters,
                 substitutedValueParameters,
                 substitutedReturnType,
-                modality,
+                newModality, 
                 visibility
         );
         for (FunctionDescriptor overriddenFunction : overriddenFunctions) {
@@ -182,7 +187,7 @@ public abstract class FunctionDescriptorImpl extends DeclarationDescriptorImpl i
         return substitutedDescriptor;
     }
 
-    protected abstract FunctionDescriptorImpl createSubstitutedCopy();
+    protected abstract FunctionDescriptorImpl createSubstitutedCopy(DeclarationDescriptor newOwner);
 
     @Override
     public <R, D> R accept(DeclarationDescriptorVisitor<R, D> visitor, D data) {
diff --git a/compiler/frontend/src/org/jetbrains/jet/lang/descriptors/NamedFunctionDescriptorImpl.java b/compiler/frontend/src/org/jetbrains/jet/lang/descriptors/NamedFunctionDescriptorImpl.java
index 2bcd2613d4c..c6e5a87d2e8 100644
--- a/compiler/frontend/src/org/jetbrains/jet/lang/descriptors/NamedFunctionDescriptorImpl.java
+++ b/compiler/frontend/src/org/jetbrains/jet/lang/descriptors/NamedFunctionDescriptorImpl.java
@@ -4,6 +4,7 @@ import com.google.common.collect.Lists;
 import org.jetbrains.annotations.NotNull;
 import org.jetbrains.jet.lang.descriptors.annotations.AnnotationDescriptor;
 import org.jetbrains.jet.lang.resolve.DescriptorUtils;
+import org.jetbrains.jet.lang.types.TypeSubstitutor;
 
 import java.util.List;
 
@@ -27,9 +28,9 @@ public class NamedFunctionDescriptorImpl extends FunctionDescriptorImpl implemen
     }
 
     @Override
-    protected FunctionDescriptorImpl createSubstitutedCopy() {
+    protected FunctionDescriptorImpl createSubstitutedCopy(DeclarationDescriptor newOwner) {
         return new NamedFunctionDescriptorImpl(
-                getContainingDeclaration(),
+                newOwner,
                 this,
                 // TODO : safeSubstitute
                 getAnnotations(),
@@ -39,16 +40,6 @@ public class NamedFunctionDescriptorImpl extends FunctionDescriptorImpl implemen
     @NotNull
     @Override
     public NamedFunctionDescriptor copy(DeclarationDescriptor newOwner, boolean makeNonAbstract) {
-        NamedFunctionDescriptorImpl copy = new NamedFunctionDescriptorImpl(newOwner, getOriginal(), Lists.newArrayList(getAnnotations()), getName());
-        copy.initialize(
-                getReceiverParameter().exists() ? getReceiverParameter().getType() : null,
-                expectedThisObject,
-                DescriptorUtils.copyTypeParameters(copy, typeParameters),
-                DescriptorUtils.copyValueParameters(copy, unsubstitutedValueParameters),
-                unsubstitutedReturnType,
-                DescriptorUtils.convertModality(modality, makeNonAbstract),
-                visibility
-        );
-        return copy;
+        return (NamedFunctionDescriptor) doSubstitute(TypeSubstitutor.EMPTY, newOwner, DescriptorUtils.convertModality(modality, makeNonAbstract));
     }
 }
diff --git a/compiler/frontend/src/org/jetbrains/jet/lang/descriptors/VariableAsFunctionDescriptor.java b/compiler/frontend/src/org/jetbrains/jet/lang/descriptors/VariableAsFunctionDescriptor.java
index 744bb7729f0..f2a3a4b816e 100644
--- a/compiler/frontend/src/org/jetbrains/jet/lang/descriptors/VariableAsFunctionDescriptor.java
+++ b/compiler/frontend/src/org/jetbrains/jet/lang/descriptors/VariableAsFunctionDescriptor.java
@@ -36,7 +36,7 @@ public class VariableAsFunctionDescriptor extends FunctionDescriptorImpl {
     }
 
     @Override
-    protected FunctionDescriptorImpl createSubstitutedCopy() {
+    protected FunctionDescriptorImpl createSubstitutedCopy(DeclarationDescriptor newOwner) {
         throw new IllegalStateException();
     }
-}
\ No newline at end of file
+}
diff --git a/compiler/frontend/src/org/jetbrains/jet/lang/resolve/calls/ExpressionAsFunctionDescriptor.java b/compiler/frontend/src/org/jetbrains/jet/lang/resolve/calls/ExpressionAsFunctionDescriptor.java
index 9b38282eb41..1ccd711ff15 100644
--- a/compiler/frontend/src/org/jetbrains/jet/lang/resolve/calls/ExpressionAsFunctionDescriptor.java
+++ b/compiler/frontend/src/org/jetbrains/jet/lang/resolve/calls/ExpressionAsFunctionDescriptor.java
@@ -20,7 +20,7 @@ public class ExpressionAsFunctionDescriptor extends FunctionDescriptorImpl {
     }
 
     @Override
-    protected FunctionDescriptorImpl createSubstitutedCopy() {
+    protected FunctionDescriptorImpl createSubstitutedCopy(DeclarationDescriptor newOwner) {
         throw new IllegalStateException();
     }
 
diff --git a/compiler/frontend/src/org/jetbrains/jet/lang/types/error/NamedFunctionDescriptorErrorImpl.java b/compiler/frontend/src/org/jetbrains/jet/lang/types/error/NamedFunctionDescriptorErrorImpl.java
index 4ebb4249b98..b3e07225c1d 100644
--- a/compiler/frontend/src/org/jetbrains/jet/lang/types/error/NamedFunctionDescriptorErrorImpl.java
+++ b/compiler/frontend/src/org/jetbrains/jet/lang/types/error/NamedFunctionDescriptorErrorImpl.java
@@ -25,7 +25,7 @@ public class NamedFunctionDescriptorErrorImpl extends NamedFunctionDescriptorImp
     }
 
     @Override
-    protected FunctionDescriptorImpl createSubstitutedCopy() {
+    protected FunctionDescriptorImpl createSubstitutedCopy(DeclarationDescriptor newOwner) {
         return this;
     }