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Public folder storage limits in the folder hierarchy

How do Public Folder storage limits count in the folder hierarchy? Do they count for the content of top folder only, or do they count for the content of whole folder tree -- beyond the top folder?
If a folder is created with Exchange System Manager, with storage limits set -- for example, a Prohibit Post at 500 KB -- then only that folder is evaluated. If the Administrator creates a sub-folder underneath, and assigns it a 600 KB limit, then that folder's size limits are enforced, independent of its parent. If a user is granted the Create Subfolders Client permission (for example as a publishing editor or owner), those folders are not by default size limited. They are also independent of any parent folder size restrictions.

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