In general Local Access windows are used to bind memory-mapped target controllers with specific areas in the SOC address space - read QorIQ T1040 Reference Manual, 2.3 Local Access Windows (LAWs).
Note that the e5500 MMU uses 36-bit physical addresses, but IFC is capable to decode only 32-bit addresses - this is one of the reasons why the LAWs are needed.
The T1042 LAW is capable to determine a window anywhere in the 36-bit internal address space - see the RM, 2.4.1 LAWn base address register high (LAW_LAWBARHn) and 2.4.2 LAWn base address register low (LAW_LAWBARLn).
Target controller of the LAW is specified in the LAW_LAWARn[TRGT_ID].
In case of the IFC the addressing sequence is as follows:
1) Core MMU (or another SOC master) generates a transaction with 36-bit target address
2) If the address is within the IFC LAW the transaction is dispatched to the IFC
3) The IFC uses lower 32 bits of the address to determine specific bank - refer to the RM, 24.3.4 Address Mask register (IFC_AMASKn).