When Christ spoke, "It is finished" and died on that cross, at that moment is when the New Covenant took place? His death paid the penalty correct?
"So when Jesus had received the sour wine, He said, "It is finished!" And bowing His head, He gave up His spirit" (John 19:30).
The word Jesus used in Greek is teleo, which means brought to an end, completed, finished, or accomplished. In a direct sense, it meant that his suffering and his life was done. But it also meant that task Jesus was sent to do was also completed.
Jesus came to bring salvation to the world. "For God did not send His Son into the world to condemn the world, but that the world through Him might be saved" (John 3:17). Thus, one thing finished by the death of Jesus was the bringing salvation to mankind. "Being justified freely by his grace through the redemption that is in Christ Jesus; whom God set forth to be an atoning sacrifice, through faith in his blood, for a demonstration of his righteousness through the passing over of prior sins, in God's forbearance; to demonstrate his righteousness at this present time; that he might himself be just, and the justifier of him who has faith in Jesus" (Romans 1:24-26).
Jesus stated that he came to fulfill (bring to a completion) the law. "Do not think that I came to destroy the Law or the Prophets. I did not come to destroy but to fulfill. For assuredly, I say to you, till heaven and earth pass away, one jot or one tittle will by no means pass from the law till all is fulfilled" (Matthew 5:17-18). Jesus' death brought the law of Moses, the old covenant, to a completion. "And you, being dead in your trespasses and the uncircumcision of your flesh, He has made alive together with Him, having forgiven you all trespasses, having wiped out the handwriting of requirements that was against us, which was contrary to us. And He has taken it out of the way, having nailed it to the cross" (Colossians 2:13-14). That was necessary in order that people could be joined under a new covenant. "Therefore, my brethren, you also have become dead to the law through the body of Christ, that you may be married to another--to Him who was raised from the dead, that we should bear fruit to God" (Romans 7:4).
His death was also necessary to bring in the new law. "And for this reason He is the Mediator of the new covenant, by means of death, for the redemption of the transgressions under the first covenant, that those who are called may receive the promise of the eternal inheritance. For where there is a testament, there must also of necessity be the death of the testator. For a testament is in force after men are dead, since it has no power at all while the testator lives" (Hebrews 9:15-17).
Therefore, Christ's death is the pivot point in history. The statement "It is finished" indicates that history was changed.