What happens to an intercreditor agreement if my bank loan gets paid off early?

This depends entirely on the specific termination language written into the intercreditor, or subordination, agreement itself, rather than any automatic rule that applies across every deal. An intercreditor agreement generally exists to set out the relative priority between the bank's senior debt and another secured creditor, such as a vendor take-back seller, for as long as the bank's debt remains outstanding, so once that senior debt is fully repaid, the specific priority arrangement it was protecting typically has nothing practical left to apply to.

Some intercreditor agreements are drafted to terminate automatically once the senior debt is confirmed repaid in full, while others require a formal discharge or release document to be signed and delivered before the arrangement is considered at an end, and the subordinated creditor's practical position may simply improve once the senior lender is out of the picture even before any formal paperwork is completed. Because the consequences of an early payout can differ depending on exactly how the agreement is worded, this should be confirmed directly against the intercreditor agreement's own termination provisions rather than assumed.