diff --git a/distribution/lib/Standard/Base/0.0.0-dev/src/Errors/Illegal_Argument.enso b/distribution/lib/Standard/Base/0.0.0-dev/src/Errors/Illegal_Argument.enso
index 020a576e9a94..da3af9ab0775 100644
--- a/distribution/lib/Standard/Base/0.0.0-dev/src/Errors/Illegal_Argument.enso
+++ b/distribution/lib/Standard/Base/0.0.0-dev/src/Errors/Illegal_Argument.enso
@@ -5,7 +5,6 @@ import project.Panic.Panic
 
 polyglot java import java.lang.IllegalArgumentException
 
-@Builtin_Type
 type Illegal_Argument
     ## PRIVATE
        UNSTABLE
diff --git a/distribution/lib/Standard/Base/0.0.0-dev/src/Runtime/Managed_Resource.enso b/distribution/lib/Standard/Base/0.0.0-dev/src/Runtime/Managed_Resource.enso
index 04a8b75362e2..d57e805c3366 100644
--- a/distribution/lib/Standard/Base/0.0.0-dev/src/Runtime/Managed_Resource.enso
+++ b/distribution/lib/Standard/Base/0.0.0-dev/src/Runtime/Managed_Resource.enso
@@ -1,10 +1,15 @@
 ## An API for manual resource management.
 
 import project.Any.Any
+import project.Data.Text.Text
+import project.Error.Error
 import project.Errors.Common.Uninitialized_State
+import project.Errors.Illegal_Argument.Illegal_Argument
 import project.Meta
 import project.Nothing.Nothing
+import project.Panic.Panic
 from project.Data.Boolean import Boolean, False, True
+from project.Data.Text.Extensions import all
 
 ## Resource provides an API for manual management of computation resources.
 
@@ -47,7 +52,7 @@ type Managed_Resource
        ! Multiple `Managed_Resource`s for the same resource
 
          Using the same underlying resource with multiple managed resource
-         instances is an error and will result in a `Forbidden_Operation` panic.
+         instances is an error and will result in an `Illegal_Argument` panic.
 
        ! Values Eligible to be `Managed_Resource`s
 
@@ -64,7 +69,8 @@ type Managed_Resource
        A `Managed_Resource` object that can be used to access the resource.
     register : Any -> (Any -> Nothing) -> Boolean -> Managed_Resource
     register resource function system_finalization_allowed=False =
-        @Tail_Call register_builtin resource function system_finalization_allowed
+        _handle_double_registration <|
+            @Tail_Call register_builtin resource function system_finalization_allowed
 
     ## PRIVATE
        ADVANCED
@@ -115,3 +121,13 @@ register_builtin r fn sys:Boolean = @Builtin_Method "Managed_Resource.register_b
 
 ## PRIVATE
 with_builtin r fn = @Builtin_Method "Managed_Resource.with_builtin"
+
+## PRIVATE
+   Catch a double-registration panic and re-raise it as an `Illegal_Argument`.
+_handle_double_registration ~action =
+    handler caught =
+        payload = caught.payload
+        is_double_registration = payload.is_a Text && payload.starts_with "Object is already registered as a ManagedResource"
+        if is_double_registration.not then Panic.throw caught else
+            Panic.throw (Illegal_Argument.Error payload)
+    Panic.catch Any action handler
diff --git a/docs/semantics/managed-resources.md b/docs/semantics/managed-resources.md
index fbdcea82c94d..d69d6f7679c4 100644
--- a/docs/semantics/managed-resources.md
+++ b/docs/semantics/managed-resources.md
@@ -97,7 +97,7 @@ be finalized as soon as the first managed resource is garbage collected.
 Moreover, the finalizer will be called for each garbage collected managed
 resource, leading to multiple-finalization of the underlying object.  Therefore,
 using the same underlying resource with multiple managed resource instances
-is an error and will result in a `Forbidden_Operation` panic.
+is an error and will result in an `Illegal_Argument` panic.
 
 ### Objects Eligible to be a Managed Resource
 
diff --git a/engine/runtime/src/main/java/org/enso/interpreter/node/expression/builtin/error/IllegalArgument.java b/engine/runtime/src/main/java/org/enso/interpreter/node/expression/builtin/error/IllegalArgument.java
deleted file mode 100644
index 683b926e1b54..000000000000
--- a/engine/runtime/src/main/java/org/enso/interpreter/node/expression/builtin/error/IllegalArgument.java
+++ /dev/null
@@ -1,18 +0,0 @@
-package org.enso.interpreter.node.expression.builtin.error;
-
-import java.util.List;
-import org.enso.interpreter.dsl.BuiltinType;
-import org.enso.interpreter.node.expression.builtin.UniquelyConstructibleBuiltin;
-
-@BuiltinType
-public class IllegalArgument extends UniquelyConstructibleBuiltin {
-  @Override
-  protected String getConstructorName() {
-    return "Error";
-  }
-
-  @Override
-  protected List<String> getConstructorParamNames() {
-    return List.of("message");
-  }
-}
diff --git a/engine/runtime/src/main/java/org/enso/interpreter/runtime/ResourceManager.java b/engine/runtime/src/main/java/org/enso/interpreter/runtime/ResourceManager.java
index 3f7f6096c83f..9d6337a91b7d 100644
--- a/engine/runtime/src/main/java/org/enso/interpreter/runtime/ResourceManager.java
+++ b/engine/runtime/src/main/java/org/enso/interpreter/runtime/ResourceManager.java
@@ -25,7 +25,7 @@
  * Allows the context to attach garbage collection hooks on the removal of certain objects.
  *
  * <p><Using the same underlying resource with multiple managed resource instances is an error and
- * will result in a `Forbidden_Operation` panic.
+ * will result in an `Illegal_Argument` panic.
  *
  * <p>Truly atomic values such as integer `2` cannot be managed resources.
  */
@@ -156,8 +156,7 @@ public synchronized ManagedResource register(
     if (alreadyRegistered(object)) {
       var error = context.getBuiltins().error();
       var msg = "Object is already registered as a ManagedResource: " + object;
-      var payload = error.makeIllegalArgument(msg);
-      throw new PanicException(payload, null);
+      throw new PanicException(msg, null);
     }
 
     if (CLOSED == processor) {
diff --git a/engine/runtime/src/main/java/org/enso/interpreter/runtime/builtin/Error.java b/engine/runtime/src/main/java/org/enso/interpreter/runtime/builtin/Error.java
index 1d2420164d03..175787e0b5ab 100644
--- a/engine/runtime/src/main/java/org/enso/interpreter/runtime/builtin/Error.java
+++ b/engine/runtime/src/main/java/org/enso/interpreter/runtime/builtin/Error.java
@@ -9,7 +9,6 @@
 import org.enso.interpreter.node.expression.builtin.error.CaughtPanic;
 import org.enso.interpreter.node.expression.builtin.error.CompileError;
 import org.enso.interpreter.node.expression.builtin.error.ForbiddenOperation;
-import org.enso.interpreter.node.expression.builtin.error.IllegalArgument;
 import org.enso.interpreter.node.expression.builtin.error.IncomparableValues;
 import org.enso.interpreter.node.expression.builtin.error.IndexOutOfBounds;
 import org.enso.interpreter.node.expression.builtin.error.InexhaustivePatternMatch;
@@ -59,7 +58,6 @@ public final class Error {
   private final ArithmeticError arithmeticError;
   private final InvalidArrayIndex invalidArrayIndex;
   private final ArityError arityError;
-  private final IllegalArgument illegalArgument;
   private final IncomparableValues incomparableValues;
   private final UnsupportedArgumentTypes unsupportedArgumentsError;
   private final ModuleDoesNotExist moduleDoesNotExistError;
@@ -100,7 +98,6 @@ public Error(Builtins builtins, EnsoContext context) {
     arithmeticError = builtins.getBuiltinType(ArithmeticError.class);
     invalidArrayIndex = builtins.getBuiltinType(InvalidArrayIndex.class);
     arityError = builtins.getBuiltinType(ArityError.class);
-    illegalArgument = builtins.getBuiltinType(IllegalArgument.class);
     incomparableValues = builtins.getBuiltinType(IncomparableValues.class);
     unsupportedArgumentsError = builtins.getBuiltinType(UnsupportedArgumentTypes.class);
     moduleDoesNotExistError = builtins.getBuiltinType(ModuleDoesNotExist.class);
@@ -133,10 +130,6 @@ public Atom makeIndexOutOfBounds(long index, long length) {
     return indexOutOfBounds.newInstance(index, length);
   }
 
-  public Atom makeIllegalArgument(Object message) {
-    return illegalArgument.newInstance(message);
-  }
-
   public Atom makeIncomparableValues(Object leftOperand, Object rightOperand) {
     return incomparableValues.newInstance(leftOperand, rightOperand);
   }
@@ -364,8 +357,8 @@ public Atom makePrivateAccessError(
         thisProjName, targetProjName, Text.create(targetMethodName));
   }
 
-  public Atom makeForbiddenOperation(String message) {
-    return forbiddenOperation.newInstance(Text.create(message));
+  public ForbiddenOperation getForbiddenOperation() {
+    return forbiddenOperation;
   }
 
   public Atom makeUnimplemented(String operation) {
diff --git a/engine/runtime/src/main/java/org/enso/interpreter/runtime/data/ManagedResource.java b/engine/runtime/src/main/java/org/enso/interpreter/runtime/data/ManagedResource.java
index 8173a82af680..3ef24c455a76 100644
--- a/engine/runtime/src/main/java/org/enso/interpreter/runtime/data/ManagedResource.java
+++ b/engine/runtime/src/main/java/org/enso/interpreter/runtime/data/ManagedResource.java
@@ -37,7 +37,7 @@
  * ProcessItems} processor.
  *
  * <p><Using the same underlying resource with multiple managed resource instances is an error and
- * will result in a `Forbidden_Operation` panic.
+ * will result in an `Illegal_Argument` panic.
  *
  * <p>Truly atomic values such as integer `2` cannot be managed resources.
  */