diff --git a/compiler/frontend/src/org/jetbrains/jet/lang/types/expressions/ExpressionTypingVisitorForStatements.java b/compiler/frontend/src/org/jetbrains/jet/lang/types/expressions/ExpressionTypingVisitorForStatements.java
index 9cd7db2a582..a10414495bf 100644
--- a/compiler/frontend/src/org/jetbrains/jet/lang/types/expressions/ExpressionTypingVisitorForStatements.java
+++ b/compiler/frontend/src/org/jetbrains/jet/lang/types/expressions/ExpressionTypingVisitorForStatements.java
@@ -124,6 +124,7 @@ public class ExpressionTypingVisitorForStatements extends ExpressionTypingVisito
         }
 
         scope.addVariableDescriptor(propertyDescriptor);
+        ModifiersChecker.create(context.trace).checkModifiersForLocalDeclaration(property);
         return DataFlowUtils.checkStatementType(property, context, context.dataFlowInfo);
     }
 
@@ -146,10 +147,13 @@ public class ExpressionTypingVisitorForStatements extends ExpressionTypingVisito
 
     @Override
     public JetTypeInfo visitNamedFunction(JetNamedFunction function, ExpressionTypingContext context) {
-        SimpleFunctionDescriptor functionDescriptor = context.expressionTypingServices.getDescriptorResolver().resolveFunctionDescriptor(scope.getContainingDeclaration(), scope, function, context.trace);
+        SimpleFunctionDescriptor functionDescriptor = context.expressionTypingServices.getDescriptorResolver().
+                resolveFunctionDescriptor(scope.getContainingDeclaration(), scope, function, context.trace);
+
         scope.addFunctionDescriptor(functionDescriptor);
         JetScope functionInnerScope = FunctionDescriptorUtil.getFunctionInnerScope(context.scope, functionDescriptor, context.trace);
         context.expressionTypingServices.checkFunctionReturnType(functionInnerScope, function, functionDescriptor, context.dataFlowInfo, null, context.trace);
+        ModifiersChecker.create(context.trace).checkModifiersForLocalDeclaration(function);
         return DataFlowUtils.checkStatementType(function, context, context.dataFlowInfo);
     }
 
diff --git a/compiler/testData/codegen/script/fib.lang.kt b/compiler/testData/codegen/script/fib.lang.kt
index bfcca90b6a3..fe7143e7cb2 100644
--- a/compiler/testData/codegen/script/fib.lang.kt
+++ b/compiler/testData/codegen/script/fib.lang.kt
@@ -5,4 +5,4 @@ fun fib(n: Int): Int {
     return v
 }
 
-public val result = fib(num)
+val result = fib(num)
diff --git a/compiler/testData/diagnostics/tests/declarationChecks/localDeclarationModifiers.kt b/compiler/testData/diagnostics/tests/declarationChecks/localDeclarationModifiers.kt
new file mode 100644
index 00000000000..8d5cfea8e8f
--- /dev/null
+++ b/compiler/testData/diagnostics/tests/declarationChecks/localDeclarationModifiers.kt
@@ -0,0 +1,12 @@
+package d
+
+class T {
+    fun baz() = 1
+}
+
+fun foo() {
+    <!ILLEGAL_MODIFIER!>public<!> val <!UNUSED_VARIABLE!>i<!> = 11
+    <!ILLEGAL_MODIFIER!>abstract<!> val <!VARIABLE_WITH_NO_TYPE_NO_INITIALIZER, UNUSED_VARIABLE!>j<!>
+    <!ILLEGAL_MODIFIER!>override<!> fun T.baz() = 2
+    <!ILLEGAL_MODIFIER!>private<!> fun bar() = 2
+}
\ No newline at end of file
diff --git a/compiler/testData/readJavaBinaryClass/MethodTypePTwoUpperBounds.kt b/compiler/testData/readJavaBinaryClass/MethodTypePTwoUpperBounds.kt
index 9e475eaac76..63a9e56ce05 100644
--- a/compiler/testData/readJavaBinaryClass/MethodTypePTwoUpperBounds.kt
+++ b/compiler/testData/readJavaBinaryClass/MethodTypePTwoUpperBounds.kt
@@ -2,6 +2,5 @@ package test
 
 public open class MethodTypePTwoUpperBounds() : java.lang.Object() {
     public open fun <T> foo(): Unit where T : Cloneable?, T : Runnable? {
-        override fun run() = throw UnsupportedOperationException()
     }
 }
diff --git a/compiler/tests/org/jetbrains/jet/checkers/JetDiagnosticsTestGenerated.java b/compiler/tests/org/jetbrains/jet/checkers/JetDiagnosticsTestGenerated.java
index 127378e4429..c4d8484b46f 100644
--- a/compiler/tests/org/jetbrains/jet/checkers/JetDiagnosticsTestGenerated.java
+++ b/compiler/tests/org/jetbrains/jet/checkers/JetDiagnosticsTestGenerated.java
@@ -1098,6 +1098,11 @@ public class JetDiagnosticsTestGenerated extends AbstractDiagnosticsTestWithEage
                 doTest("compiler/testData/diagnostics/tests/declarationChecks/kt559.kt");
             }
             
+            @TestMetadata("localDeclarationModifiers.kt")
+            public void testLocalDeclarationModifiers() throws Exception {
+                doTest("compiler/testData/diagnostics/tests/declarationChecks/localDeclarationModifiers.kt");
+            }
+            
             @TestMetadata("LocalVariableWithNoTypeInformation.kt")
             public void testLocalVariableWithNoTypeInformation() throws Exception {
                 doTest("compiler/testData/diagnostics/tests/declarationChecks/LocalVariableWithNoTypeInformation.kt");
@@ -3075,7 +3080,6 @@ public class JetDiagnosticsTestGenerated extends AbstractDiagnosticsTestWithEage
             suite.addTestSuite(DataFlow.class);
             suite.addTestSuite(DataFlowInfoTraversal.class);
             suite.addTest(DeclarationChecks.innerSuite());
-            suite.addTestSuite(DeclarationChecks.class);
             suite.addTestSuite(Enum.class);
             suite.addTestSuite(Extensions.class);
             suite.addTestSuite(Generics.class);
diff --git a/libraries/stdlib/test/org/jetbrains/kotlin/tools/GenerateDownTos.kt b/libraries/stdlib/test/org/jetbrains/kotlin/tools/GenerateDownTos.kt
index 29bd1eddba9..9d21c63db03 100644
--- a/libraries/stdlib/test/org/jetbrains/kotlin/tools/GenerateDownTos.kt
+++ b/libraries/stdlib/test/org/jetbrains/kotlin/tools/GenerateDownTos.kt
@@ -6,7 +6,7 @@ import java.io.PrintWriter
 
 private fun generateDownTos(outputFile: File, header: String) {
 
-    private fun getMaxType(fromType: String, toType: String): String {
+    fun getMaxType(fromType: String, toType: String): String {
         return when {
             fromType == "Double" || toType == "Double" -> "Double"
             fromType == "Float"  || toType == "Float"  -> "Float"
@@ -18,7 +18,7 @@ private fun generateDownTos(outputFile: File, header: String) {
         }
     }
 
-    private fun generateDownTo(writer: PrintWriter, fromType: String, toType: String) {
+    fun generateDownTo(writer: PrintWriter, fromType: String, toType: String) {
         val elementType = getMaxType(fromType, toType)
         val rangeType = elementType + "Range"
         val fromExpr = "this${ if (elementType == fromType) "" else ".to$elementType()" }"