We analyze an autoassociative network of Potts units, coupled via tensor connections, as an effective model of extended cortical networks with distinct short and long-range synaptic connections. To study semantic memory, organized in terms of the relations between the attributes of real-world knowledge, we formulate a generative model of item representation with correlations. The model ascribes such correlations to the influence of underlying "factors": items with more shared factors have more correlated representations. Moreover, if many factors are balanced, correlations are overall low; whereas if a few factors dominate (increasing a dominance parameter ζ), they become strong. Our model allows for correlations that are neither trivial (random) nor merely hierarchical (an ultrametric tree). The network can retrieve one from up to p c CS 2 /a weakly correlated items, of order 10,000,000 with human cortical parameters. When its storage capacity is exceeded, however, retrieval fails completely only for low ζ; above a critical dominance value ζ c , a phase transition leads to a regime where the network still extracts considerable information about the cued item, even if not recovering its detailed representation: possibly a model of semantic memory resilience in remember/know paradigms.