The following situations are described in draft 1 (and R5RS) with "an error is signalled":
I propose that in both cases the implementation be required to raise an exception as if by applying raise (that is, non-continuably) to an implementation-defined object, which means it can be caught by the R7RS exception system. Note that there is no requirement to create a fresh object.
We voted to make this clear.
I like the general idea. I might also suggest that the language signally an error be considered synonymous with raising an appropriate condition using raise.