OSPF down-bit set for a route originated as static?

If remote PE is redistributing a static route to VRF, local PE will get this route via BGP. Now suppose this local PE and CE is running OSPF and BGP VPNv4 route is redistributed to OSPF, will this PE set down-bit for type 5 LSAs advertised to CE?
I am bit confused by RFC-4576, it states that "When a type 3, 5, or 7 LSA is sent from a PE to a CE, the DN bit MUST be set", my understanding is that only if the route is originated from OSPF (at remote PE) then PE will set down-bit in LSAs advertised to CE.

Niranjan,
IOS also set the tag to the BGP ASN on external routes as a loop avoidance mechanism as described in RFC 4577, section 4.2.5.2. According to the same RFC, this method has to be supported by default by any compliant implementation for backward compatibility purposes.
RFC4576: Using a Link State Advertisement (LSA) Options Bit to Prevent Looping in BGP/MPLS IP Virtual Private Networks (VPNs)
http://www.ietf.org/rfc/rfc4576.txt?number=4576
RFC4577: OSPF as the Provider/Customer Edge Protocol for BGP/MPLS IP Virtual Private Networks (VPNs)
http://www.ietf.org/rfc/rfc4577.txt?number=4577
Regards,

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