Dont recur on items during gather loans of block

src/librustc/middle/borrowck/gather_loans/mod.rs

@@ -95,6 +95,11 @@ impl visit::Visitor<@mut GatherLoanCtxt> for GatherLoanVisitor {
     fn visit_local(&mut self, l:@Local, e:@mut GatherLoanCtxt) {
         gather_loans_in_local(self, l, e);
     }
+
+    // #7740: Do not visit items here, not even fn items nor methods
+    // of impl items; the outer loop in borrowck/mod will visit them
+    // for us in turn.  Thus override visit_item's walk with a no-op.
+    fn visit_item(&mut self, _:@ast::item, _:@mut GatherLoanCtxt) { }
 }
 
 pub fn gather_loans(bccx: @BorrowckCtxt,
@@ -135,10 +140,8 @@ fn gather_loans_in_fn(v: &mut GatherLoanVisitor,
                       id: ast::NodeId,
                       this: @mut GatherLoanCtxt) {
     match fk {
-        // Do not visit items here, the outer loop in borrowck/mod
-        // will visit them for us in turn.
         &visit::fk_item_fn(*) | &visit::fk_method(*) => {
-            return;
+            fail!("cannot occur, due to visit_item override");
         }
 
         // Visit closures as part of the containing item.

src/test/run-pass/borrowck-static-item-in-fn.rs

@@ -0,0 +1,15 @@
+// Copyright 2013 The Rust Project Developers. See the COPYRIGHT
+// file at the top-level directory of this distribution and at
+// http://rust-lang.org/COPYRIGHT.
+//
+// Licensed under the Apache License, Version 2.0 <LICENSE-APACHE or
+// http://www.apache.org/licenses/LICENSE-2.0> or the MIT license
+// <LICENSE-MIT or http://opensource.org/licenses/MIT>, at your
+// option. This file may not be copied, modified, or distributed
+// except according to those terms.
+
+// Regression test for issue #7740
+
+fn main() {
+    static A: &'static char = &'A';
+}