We study possibilities of reasoning about extensions of base theories with functions which satisfy certain recursion and homomorphism properties. Our focus is on emphasizing possibilities of hierarchical and modular reasoning in such extensions and combinations thereof. begin{itemize} item[(1)] We show that the theory of absolutely free constructors is local, and locality is preserved also in the presence of selectors. These results are consistent with existing decision procedures for this theory (e.g. by Oppen). item[(2)] We show that, under certain assumptions, extensions of the theory of absolutely free constructors with functions satisfying a certain type of recursion axioms satisfy locality properties, and show that for f...